Oral Arguments on Insurers' Rights During Bankruptcy Intrigue Experts

Oral Arguments on Insurers' Rights During Bankruptcy Intrigue Experts

March 26, 2024, Business Insurance

David Goodwin’s commentary was included in an article appearing in Business Insurance covering the U.S. Supreme Court’s consideration of Truck Insurance Exchange v. Kaiser Gypsum, which could establish the parameters for when an insurer can be heard during a bankruptcy proceeding. David commented on Truck’s claim, which is rooted in concerns about a portion of the plan that contains fraud-prevention measures only for uninsured claims.

According to David, Truck “has a sympathetic position because it’s going to be called upon to pay a lot of money without input into how the plan is crafted.” He added that insurers will object to proposed reorganization plans if they believe claimants are being overcompensated and they disagree with the amount of contributions from excess insurers.