Insurers

Supreme Court Examines the Role of Insurers in Chapter 11 Cases, Posing New Questions

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WASHINGTON (AP) — The standing of insurers in Chapter 11 bankruptcy cases is being considered by the Supreme Court. The outcome of the case, Citizens Development Center vs. Standard Insurance Corporation, could have significant implications for insurers and other creditors in bankruptcy proceedings. At issue is whether insurers have standing to bring claims against a bankrupt debtor when their policyholder has also filed a proof of claim. The case centers around the interpretation of Bankruptcy Rule 3009, which governs the filing of claims by creditors. The Supreme Court’s decision could impact the treatment of insurance … Read more

Insurers Face High Stakes in Mass Tort Bankruptcy: What You Need to Know

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Insurers in mass tort Chapter 11 bankruptcy cases are currently under scrutiny for their role in the legal process. These bankruptcies, which occur when many individuals file claims against a single defendant, have significant implications for both the insurance industry and the victims seeking compensation. Mass tort Chapter 11 bankruptcies raise questions about insurance companies’ ability to meet their obligations in such situations. This is particularly relevant as more individuals come forward with claims against defendants, leading to a surge in bankruptcy filings. One of the main concerns is whether insurance policies will provide coverage … Read more