Insurance and Bankruptcy Require Two Different Areas of Expertise

A bankruptcy filing does not eliminate an insurance policy or automatically resolve a coverage dispute. Instead, bankruptcy law overlays the existing insurance relationship and can affect how the parties exercise their contractual rights.

For insurers, seemingly routine claims-handling decisions can raise bankruptcy issues involving the automatic stay, property of the bankruptcy estate, discharge, claim administration, settlement authority, proofs of claim, and the treatment of insurance proceeds.

Perry, PLLC helps insurers identify those issues early and develop a strategy for addressing them.

Insurance Policies and Insurance Assets in Bankruptcy

Insurance policies and the rights associated with them can become important assets in a bankruptcy case. Depending on the circumstances, insurance proceeds may also become the subject of competing claims.

We advise insurers regarding issues involving:

• Ownership and treatment of insurance policies

• Insurance proceeds

• Policy proceeds as property of the bankruptcy estate

• Debtor and trustee rights

• Assignment of insurance rights

• Policy transfers

• Settlements involving insurance proceeds

• Competing claims to insurance assets

Bankruptcy Litigation and Adversary Proceedings

Insurance-related bankruptcy disputes can require litigation in federal bankruptcy courts or other courts with jurisdiction over the dispute.

Perry, PLLC represents insurers in matters involving:

• Motions for relief from the automatic stay

• Claims objections

• Adversary proceedings

• Declaratory judgment actions

• Coverage-related bankruptcy litigation

• Disputes concerning insurance proceeds

• Enforcement of contractual rights

• Bankruptcy-related appeals