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Bankruptcy Treatment of Deductibles and Self-Insured Retentions: Insurer and Debtor Rights and Obligations

Coverage Issues When Debtors Cannot Satisfy SIR or Deductibles

A live 90-minute CLE video webinar with interactive Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Thursday, November 7, 2024 (in 11 days)

1:00pm-2:30pm EST, 10:00am-11:30am PST

or call 1-800-926-7926
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This CLE webinar will review the rights and obligations of debtors and insurers when claims exist or have been made against a debtor with a self-insured deductible that it has not and cannot pay.

Description

Many businesses manage risk and the cost of insurance with high deductibles or self-insured retentions. This approach is often attractive to policyholders that expect a large number of smaller claims, such as restaurants and retailers.

Whether there is coverage if these companies file bankruptcy and cannot pay the SIR or deductible depends on many variables: whether the policy is a guaranteed-cost or a loss-sensitive one; when coverage is triggered; whether only claims above a certain threshold are covered; and more.

If coverage does not exist until an SIR is satisfied, and the debtor cannot pay, courts differ regarding the effect on the insurer’s duty to defend/and or indemnify. Assuming an insurer does pay claims for which a deductible or SIR was not satisfied in accordance with the policy, bankruptcy courts vary on how they classify and treat the claim.

Listen as this experienced panel helps clarify the often confusing rights and obligations of debtors in bankruptcy and insurers when claims exist or have been made against a debtor with a self-insured deductible that it has not and cannot pay.

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Outline

  1. Distinctions among types of policies
  2. Effect of policy type on parties
  3. Classification of claims

Benefits

The panel will review these and other important issues:

  • Is the payment of SIR or deductible an expense in the ordinary course of business or does it need court approval?
  • Should the right to pay SIR or deductibles be included in first-day motions?
  • How is a claim for SIR or deductible classified?
  • Can non-insureds satisfy the SIR?

Faculty

Lamden, Seth
Seth D. Lamden
Partner
Blank Rome

Mr. Lamden is a partner in Blank Rome’s policyholder-only insurance recovery practice. For nearly 25 years,...  |  Read More

Additional faculty
to be announced.
Attend on November 7

Cannot Attend November 7?

You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. Strafford will process CLE credit for one person on each recording. All formats include course handouts.

To find out which recorded format will provide the best CLE option, select your state:

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