Chapter 2 Supervision, Rehabilitation, and Liquidation of Troubled Insurance Companies

Index

Section 2.1 Introduction—General Scope of Chapter
Section 2.2 Definition of Insolvency
Section 2.3 Definition of Delinquency Proceeding
Section 2.4 Economic Conditions Giving Rise to Insurer Insolvencies and Other Financial Distress
Section 2.5 Combined Ratio
Section 2.6 Premium Pricing in “Hard” and “Soft” Markets
Section 2.7 Uncertain Claims Development
Section 2.8 High-Risk Reinsurance Cessions
Section 2.9 Letters of Credit, National Association of Insurance Commissioners (NAIC) Trust Accounts, and Pre-Answer Security
Section 2.10 Politics of Insurance Regulation
Section 2.11 Predicting Insurer Insolvency
Section 2.12 History of Insurance Solvency Regulation
Section 2.13 McCarran-Ferguson Act
Section 2.14 Reverse-Preemption Analysis
Section 2.15 Circuit Court Interpretations of Fabe Reverse-Preemption Test
Section 2.16 Introduction
Section 2.17 Recent Federal Proposals
Section 2.18 Proposed Optional Federal Charter
Section 2.19 Response of National Association of Insurance Commissioners (NAIC)
Section 2.20 Interstate Insurance Compact
Section 2.21 Federal Laws Relating to Insurance Issues
Section 2.22 State Regulation of Troubled Insurance Companies
Section 2.23 Introduction
Section 2.24 Codification of Missouri Insurance Insolvency Laws
Section 2.25 Uniform Insurer’s Liquidation Act (UILA)
Section 2.26 Insurers Supervision, Rehabilitation and Liquidation Act (Mo-ISRLA)
Section 2.27 Exclusive Statutory Scheme
Section 2.28 Retroactive Application of Mo-ISRLA and Other Changes to Missouri Insolvency Law
Section 2.29 Role of Director of Missouri Department of Insurance
Section 2.30 Overview
Section 2.31 Powers of Receiver
Section 2.32 Tension in Supervisory Roles of Receiver and Circuit Court
Section 2.33 Immunity Provisions
Section 2.34 “Standing in the Shoes of the Insolvent Insurer”
Section 2.35 Role of Special Deputy Receiver
Section 2.36 Role of Ancillary Receivers
Section 2.37 Role of Receivership Court
Section 2.38 Personal Jurisdiction of Receivership Court
Section 2.39 Inconvenient Forum
Section 2.40 In rem Jurisdiction of Receivership Court
Section 2.41 Appeals From Receivership Court
Section 2.42 Role of Federal Courts
Section 2.43 Federal Court Abstention
Section 2.44 Abstention in Insurance Insolvencies Under Quackenbush v. Allstate Insurance Co.
Section 2.45 Reinsurers’ Efforts to Find Federal Forum
Section 2.46 Introduction
Section 2.47 Split in Circuit Courts
Section 2.48 Reverse-Preemption Analysis of Federal Arbitration Act and New York Convention
Section 2.49 Contract Language Precludes Arbitration
Section 2.50 Additional Cases Precluding Arbitration of Reinsurance Contracts
Section 2.51 Role of Mediators and Early Neutral Evaluators
Section 2.52 Role of State Guaranty Associations
Section 2.53 Missouri Property and Casualty Insurance Guaranty Association Act (MPCIGA Act)
Section 2.54 Triggering Date
Section 2.55 Filing Claim With MPCIGA
Section 2.56 “Covered Claim”
Section 2.57 Threshold Claim Amounts and Statutory Cap
Section 2.58 Exclusion of Subrogation Recoveries
Section 2.59 Claims Involving Two or More Guaranty Associations
Section 2.60 Excess Insurance
Section 2.61 Stay of Proceedings
Section 2.62 Guaranty Associations’ Preference to Assets of Insolvent Insurer
Section 2.63 Missouri Life and Health Insurance Guaranty Association Act (MLHIGA Act)
Section 2.64 Coverage
Section 2.65 Resident and Nonresident Holders, Beneficiaries, Assignees, and Payees
Section 2.66 Statutory Limitations
Section 2.67 Statutory Caps
Section 2.68 Annuities and Unallocated Annuities
Section 2.69 MLHIGA’s Options at Insolvency
Section 2.70 Terminated Coverage
Section 2.71 Nonpayment of Premium
Section 2.72 Conflict of Laws
Section 2.73 Assignment of Rights
Section 2.74 Stay of Proceedings
Section 2.75 Role of Reinsurers
Section 2.76 Insolvency Clauses
Section 2.77 Cut-Throughs to or Direct Actions Against the Reinsurer by Policyholders, Third-Party Claimants, State Guaranty Funds (SGFs), and Ancillary Receivers
Section 2.78 Setoffs
Section 2.79 Collection of Reinsurance Recoverables—Miscellaneous Issues
Section 2.80 Role of Creditors’ Committees
Section 2.81 Role of Receiver’s Legal Counsel
Section 2.82 Supervision, Conservation, Rehabilitation, or Liquidation
Section 2.83 Introduction
Section 2.84 Administrative Orders Designed to Prevent Delinquency Proceedings
Section 2.85 Administrative Supervision
Section 2.86 Ex Parte Seizures or Conservation Orders
Section 2.87 Grounds for Rehabilitation
Section 2.88 Powers of Receiver as Rehabilitator
Section 2.89 Rehabilitation Process and Procedures
Section 2.90 Grounds for Liquidation
Section 2.91 Liquidation Process and Procedures
Section 2.92 Powers of Receiver as Liquidator
Section 2.93 Filing of Claims
Section 2.94 Late-Filed Claims
Section 2.95 Estimation of Incurred-But-Not-Reported (IBNR) Claims
Section 2.96 Claims for Amounts in Excess of the State Guaranty Fund (SGF) Liability Cap
Section 2.97 Allocation of Liability Among Insurers
Section 2.98 Prejudgment Interest on Allowed Claims
Section 2.99 Voidable Transfers and Preferences
Section 2.100 Distribution of Assets and Termination of the Proceedings