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The past several months have seen unprecedented events in the financial markets, which have had wide-ranging effects on financial institutions generally and insurance companies specifically. With these events has come a heightened focus on transactions with financially stressed companies, including...

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Bibliographic Details
Published in:Best's Review 2009-07, Vol.110 (3), p.55
Main Authors: Dunham, Wolcott B, Ostner, Steven, To, My Chi, Cochran, Alexander R
Format: Article
Language:English
Subjects:
Bankruptcy laws
Debt
Equity
Equity stake
Fraud
Guaranty funds
Insolvency
Institutional investments
Insurance companies
Insurance premiums
Law
Policyholders
Receivership
Regulatory approval
Rehabilitation
Reinsurance
Solvents
Stockholders
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Summary:The past several months have seen unprecedented events in the financial markets, which have had wide-ranging effects on financial institutions generally and insurance companies specifically. With these events has come a heightened focus on transactions with financially stressed companies, including insurance companies. There are important legal considerations that anyone structuring a transaction with a financially stressed insurance company should consider, including what would happen if the insurer entered receivership proceedings. State guaranty funds can play an important role with respect to transactions with insolvent insurance companies. The five types of transactions involving financially stressed insurance companies are: 1. bulk reinsurance, 2. acquisition of insurer equity, 3. surplus notes, 4. holding company, and 5. out of receivership.
ISSN:1527-5914
2161-282X