Big companies, who put up large collateral with their insurers to cover deductible portions of claims, could have a problem getting that money back if the carrier goes bankrupt, according to a New York State legal opinion.
But the ruling is not definitive, explained Supervising Attorney Michael Campanelli with the New York Insurance Department.
He said generally it will depend on the facts and circumstances of each case, but it is not always clear whether collateral is in a protected category or part of the general assets that can go to creditors.
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