Practice Areas & Industries: Duane Morris LLP

 




Insurance - Rehabilitation, Liquidation and InsolvencyReturn to Practice Areas & Industries

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Duane Morris's Insurance Practice Group has broad experience in representing parties arising out of state insolvency proceedings for insurance carriers. This niche practice area includes legal representation in federal and state venues throughout the United States, as well as with the insolvent insurer's estate. The breadth of our experience provides insight and counsel to rehabilitators and liquidators, solvent insurers, reinsurers, guaranty associations, managing general agents, insurance producers and policyholders.

Our lawyers have litigated a range of subject matter areas arising out of insurance insolvencies. By way of example, we have commenced actions to recover statutory preferences. We have brought premium collection lawsuits against both policyholders and insurance producers, including actions involving audited premium, retrospectively adjusted premium, and return premium due. Duane Morris lawyers have litigated various types of contractual clauses, including fiduciary and premium trust clauses; uncollected premium clauses; and termination upon insolvency clauses, and have analyzed the impact of custom and usage on contract interpretation. We have rebutted complex defenses involving the conduct of third parties, including offshore and domestic reinsurers and third-party administrators.

We have also asserted claims to recover large deductibles advanced on behalf of policyholders. Large deductible endorsements are a type of coverage permitted in some states that allows the policyholder to assume greater risk of loss through sizable deductibles and lower premium pricing. The deductible amounts advanced for the policyholder are subject to recovery under the legal theory of reimbursement.

Duane Morris has litigated policyholder direct access to reinsurance in statutory insurance insolvencies. Issues in these representations have included the propriety of direct access after the assumption of coverage by guaranty associations, assignments, direct access by policy and program line of coverage, and the role of the insurer after direct access has been allowed.

We are knowledgeable about proof-of-claim proceedings in the insolvent carrier's estate, including the statutory proof of claim process and priority scheme. Our lawyers have been involved in countless claims matters, including, by way of example, lifetime tail coverage and other coverage questions, claims valuations, claims for return premium, and claims by third-party administrators for claims administration expenses.


 
 
Articles Authored by Lawyers at this office:

Report to NAIC on Captives: The Controversy About Principle-Based Reserves and Captives Continues
, April 01, 2014
The use by life insurance companies of captive reinsurance companies to finance XXX and AXXX reserves has been a significant and contentious issue in recent years. Some members of the National Association of Insurance Commissioners (the "NAIC") are deeply opposed to captive-based...

New York Appeals Court Reverses Itself in K2 Investment Group Decision; Reaffirms Earlier Ruling in Servidone
, February 25, 2014
In a decision notable for several reasons, the New York State Court of Appeals—the state's highest court—reversed itself in K2 Investment Group, LLC v. American Guarantee & Liability Insurance Co. [21 NY3d 384 (2014)] and reaffirmed its earlier ruling in Servidone Construction Corp....

Group-Wide Global Insurance Capital Standards First Step - Basic Capital Mandate for G-SIIs
, January 03, 2014
As the first step in the development of group-wide global insurance capital standards, the International Association of Insurance Supervisors (IAIS) released for public consultation its proposal on basic capital requirements (BCR) for global systemically important insurers (G-SIIs) on December 16,...

The Development of Global Capital Standards for IAIGs and G-SIIs: Notes from IAIS Meeting on November 13, 2013
, November 29, 2013
In July 2013, the Financial Stability Board (FSB) designated nine insurance groups as global systemically important insurers (G-SIIs). Simultaneously, the International Association of Insurance Supervisors (IAIS) released its framework of policy measures for G-SIIs, which included the concept of...

First Ever: Global Capital Standards for Insurers
, October 15, 2013
On October 9, 2013, the International Association of Insurance Supervisors (IAIS) took a significant step toward developing a first-ever risk-based global insurance capital standard (ICS). The target date for development of the ICS is 2016, with full implementation beginning in 2019 after two years...

Insurance Regulatory Update - Holding Company Supervision, Designation of Prudential Financial as Being "Too Big to Fail," Principle-Based Reserving and Captives
, September 24, 2013
The National Association of Insurance Commissioners ("NAIC") 2013 Summer National Meeting, which was held in late August, saw a continuation of the debate over major insurance regulatory reforms. The first of these reforms involves supervision (regulation) of insurance and non-insurance...

Financial Stability Board Designates Nine Global Insurance Groups as "Global Systemically Important Insurers"
, August 07, 2013
The Financial Stability Board (FSB), tasked by the G-20 to prevent a future financial crisis, on July 18, 2013, designated nine large insurance groups as Global Systemically Important Insurers (G-SIIs), three from the United States-American International Group, Inc.; MetLife, Inc.; and Prudential...