Is Your Insured in a Financial Crisis? Not Sure What to Do Next? Key Takeaways
The Insurance Industry Team wants to thank you for joining members of our Insurance Coverage and Bad Faith and Financial Restructuring and Bankruptcy Practice Groups for our series addressing what an insurer should do when faced with an insured in financial crisis. This series provided you with tips for dealing with insureds that may be on the verge of filing a Chapter 11 bankruptcy, or that may be assigning or transferring their assets to benefit creditors, or that simply become defunct.
Below find key takeaways from our three sessions:
- Events can happen quickly in bankruptcies; stay on top of developments in the matter.
- Consult with bankruptcy counsel.
- Be sure not to miss important deadlines for filing claims, objecting to plans and taking other actions to preserve insurers’ rights.
- Collaborate with other affected insurers on matters of common interest.
- Know the applicable state jurisdictional rights and limitations.
- Have counsel review the Assignment to ensure it properly addresses insurance policies and claims.
- Be aware of any claims bar date and timely file claims with the assignee.
- Consult counsel to get a handle on state-specific rules respecting dissolution, direct actions, and other legal issues presented by defunct insureds.
- Carefully document your diligent efforts to track down documents and representatives of the defunct insured.
- Reduce the risk that service-related findings may have coverage implications by seeking insurance neutrality language.
Did you Miss a Section?
Part I: Is Your Insured in a Financial Crisis? Not Sure What to Do Next?
Part II: Assignments for Benefit of Creditors (ABCs)
Part III: The Defunct Insured
Stay Tuned! The Insurance Industry Team will be providing a second webinar series starting in late January or early February addressing class action litigation and its impact on the insurance industry. The first part of the series will provide an introduction to class action litigation and will discuss important preliminary considerations like jurisdiction and coverage decisions. This will be followed by a discussion of some of the more complex and novel issues facing the industry today. Be on the lookout for further details with our invitations.