Archives: Insolvency

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Insurance insolvency and allocation-of-loss

A few years back, we wrote about the New Jersey Supreme Court’s decision in Farmers Mutual Ins. Co. v. New Jersey Property-Liability Guarantee Assn.  In Farmers, the Court held that, in the context of long-tail claims, any damages or defense costs allocated to insolvent policies could not be assigned to the policyholder. When dealing with disputed … Continue Reading

Direct Actions against a Defendant’s Insurance Company

Since the economy tanked, we’ve seen a number of cases in our office (particularly in the area of construction defects) where a defendant (such as a subcontractor) has become insolvent, and we’ve been called upon to pursue a direct action against that defendant’s insurance company.  Surprisingly, insurance companies don’t really care for this. So, the … Continue Reading

Insolvent Carriers and Allocation of Loss

When I started in this business (yikes, a long time ago), we used to argue with insurance companies a lot about scintillating issues like whether environmental cleanup costs constituted “damages” under CGL policies, and whether “sudden” meant “abrupt” for purposes of the pollution exclusion. In fact, many coverage lawyers have sent their kids to college … Continue Reading

English & American Underwriting Agency Pools

Got an e-mail from my friend John Denton at Marsh Risk Consulting about The English & American Underwriting Agency Pools (“EAU”) and their Scheme of Arrangement closure. Any historic London excess placements probably would have included one or more of the EAU companies as carriers. There are actions necessary to safeguard any outstanding claims, whether known or unknown … Continue Reading
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