Foley’s Insurance attorneys regularly advise insurers, reinsurers, third-party administrators, guaranty funds, regulators, and creditors in connection with domestic and foreign insurance insolvencies.
Foley’s Insurance & Reinsurance Industry Team attorneys understand state-based solvency regulations for insurance companies and the corresponding state insolvency legal regimes that exist in each of the 51 U.S. jurisdictions.
We regularly counsel insurance companies facing the prospect of state insurance insolvency proceedings and have helped them structure and implement voluntary rehabilitation and/or liquidation plans, and also to successfully resist an involuntary insolvency proceeding
Our attorneys counsel current or potential creditors of insurance companies that are at risk of insolvency or are already insolvent. We help creditors analyze their potential financial exposure to the debtor and to identify strategic options for protecting themselves against such risks. We also help clients maximize their collections from an insolvent insurer by identifying potential priority rights and/or potential offsets and submitting proofs of claim and any other requisite pleadings to preserve a creditor’s rights.
We counsel guaranty associations whose statutory mandates are triggered by state insolvency proceedings, as well as third-party vendors that often work with such associations, in the administration and funding of policyholder claims against an insolvent insurer. We also counsel the conservators, rehabilitators, and/or liquidators presiding over insurance insolvency proceedings in respect of their strategic efforts to marshall the assets of, and resolve claims against, the debtor’s estate.
