INSOLVENCY  

 

 

 Chapter 22 Insolvency

Insolvency

[A] Overview of Insolvency Proceedings

[B] The Liquidation Proceeding

[1] Order Of Liquidation

[2] Administration of solvent’s Estate

[a] Gathering Assets

[b] Claims Administration

[i] Filing Deadlines

[ii] Incurred But Not Reported

(IBNR) Claims

 

 

[C] Priority and Distribution of claims

Alternative source of recovery

[A] Guaranty Funds

[1] Covered claims and coverage Disputes

[2] Where claim Is Filed

[3] When Claim Filed

[4] What is filed?

[5] Potential Limits on Recovery

[a] Non – Duplication Provision

[b] Net worth Limitations

[c] Per claim Caps

[d] IBNR

[6] Interstate Compacts

[B] Drop Down of Excess coverage

[1] Reasonable Expectations of The parties

[2] The relevant Policy language

[a] Limits of Liability Clauses

[i] Recoverable or Collectible

[ii] Covered claims

[iii] Exhausted Policies

[iv] Other Limits Of liability Language

[b] Other Insurance clause

[c] Following – Form policies

[3] The Duty to Defend

[4] The effect of State guaranty Fund

[5] Variations- Drop Over Claims

[6] Anti – Drop Down policy Language

[c] Other Alternative – Cutting Through reinsurance

 

 

*****Lecture seminar this course is 2.5 hours for Continuing Education (CE) This course includes current cases and the change of how the court view Insolvency of insurance companies. Course study for Professional Designation  requires 7 hours study time. Student will understand insolvency and how it relates to poor underwriting decisions, fraud, insufficient reinsurance, inadequate licensing and capitalization procedure, and unanticipated catastrophic claims all which play a part in the stability of a insurance company to pay the claims and at the same remain solvent.

 

This is a great course for professionals in risk managers and Insurance Agents who recommend insurance companies to their clients.