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Bankruptcy and Insolvency Risks in Umbrella and Excess Liability Insurance – Navigating Drop-Down Disputes, Guaranty Fund Gaps, and Layering Challenges in a Hardening Market

Few issues carry as much potential for catastrophic financial surprises as the bankruptcy or insolvency of either the insured or — more commonly and insidiously — one or more underlying insurers in an umbrella or excess liability program. Persistent inflation in jury verdicts, rising defense costs, and a series of high-profile insurer financial dislocations have once again cast sunlight on the adequacy (or inadequacy) of policy language designed to address insolvency scenarios.

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Circular Tracker 8-13-2024

A summary of the ISO Circular for August 13, 2024. Circulars provide a wide variety of information from form changes to rules, loss costs, experience reviews and other information.

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