Long-Tail Scenarios

The focal point in many insurance coverage disputes is whether a company facing a loss is entitled to the benefits of insurance coverage issued to a corporate predecessor. Policyholder advocates often cite the Ninth Circuit decision in Northern Insurance Co v. Allied Mutual Insurance Co (1992), a de...

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Bibliographic Details
Published in:Best's Review 2007-04, Vol.107 (12), p.66
Main Author: Rutkin, Alan S
Format: Article
Language:English
Subjects:
Asset acquisitions
Court decisions
Disputes
Federal court decisions
Insurance coverage
Insurance premiums
Insured losses
Policyholders
State court decisions
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Summary:The focal point in many insurance coverage disputes is whether a company facing a loss is entitled to the benefits of insurance coverage issued to a corporate predecessor. Policyholder advocates often cite the Ninth Circuit decision in Northern Insurance Co v. Allied Mutual Insurance Co (1992), a decision that allowed, under certain circumstances, the transfer of insurance coverage by operation of law. The policyholder camp argues that the operation by law approach is necessary to protect tort victims and maintain predictability in corporate restructuring. The Ohio Supreme Court also recognized that "any assignment of the rights after the losses would be in direct contravention of anti-assignment provision." Nevertheless, Ohio decided that coverage can be assigned (at least in the indemnification context) once the loss is reduced to a chose in action.
ISSN:1527-5914
2161-282X