Case Study

Proof of Claims

What to do when your Insurance Carrier goes out of Business

background

Problem

When our County Client found that that one of their Insurance companies went out of business, there were a few months to to send in Proof of Claims for all of our policyholders liabilities. Our Client had vast real estate holdings, with landfills, public works facilities, gravel pits and other industrial facilities across several hundred acres. Each of these sites had to have an individual Proof of Claim tendered to the Insurance carriers Receivership by a specific Claims Bar Date. And if this date was missed, there were no second chances. Tens of Millions of dollars were at risk!!

research & process

Solution

Restorical began by having a focused meeting with the County’s stakeholders to describe the scope of the issue and answer questions. After properly expressing the urgency and what was at stake, we obtained Buy-In from our client. What followed was a diligent research project to identify each property that had an environmental legacy with suspected or known contamination.

Working with various consultants, we then set out to quantify the Rough order of Magnitude (ROM) each of these liabilities represented. Restorical then set out to draft each of these sites’ Proof of Claims for our clients Insurance Coverage Attorney to review.

With a few days to spare, we successfully tendered dozens of claims for our County client and preserved their ability to receive a payout in the future.

Our Results

Impact

After a lengthy underwriting process, the Client received payouts from their insolvent insurance carrier. These payments came in the form of approximately 30 cents on the dollar +/- for their liabilities and while that is not enough, it was a tremendous success and improvement, when faced with $0.

Additionally, Restorical successfully located additional insurance policies over a couple of decades and these assets will fund the remainder of the County’s liabilities into the future

Find Your Policy

Get Started

Find Your Lost
Insurance Policies

For over the past 20+ years, Restorical has meticulously audited the insurance industry, including each individual insurance carrier, leveraging this real-world experience and our proprietary database to the advantage of our policyholder clients.