Events

What Happens When Your Financial Guaranty Insurer Goes "Bust"?

June 10, 2009

A Presentation on the Insurance Insolvency of a Financial Guaranty Insurer 

Topics Discussed

Financial guaranty insurers have been faced with extreme financial challenges recently due to their exposures in the structured finance market. An insurer that could not overcome these challenges through restructuring or negotiations with its creditors would be subject to an insurance company receivership proceeding under the direction of a state insurance department. A New York regulated financial guaranty insurer may be faced with such a fate. The insurer has reported a negative policyholder surplus of over $3 billion and has been ordered by the New York Insurance Department to stop paying claims. The California budget crisis may further burden the resources of financial guaranty insurers.

This timely program covered

• The standards for placing a financial guaranty insurer into receivership
• The procedures for instituting receiverships and the differences between those and federal bankruptcy laws
• Creditors' rights in state insurance receiverships
• Payments to creditors -- are they preferences that an insurance receiver can recover?
• Are there any "safe harbors" for swap claims?
• The priority for payment of claims 

Program

Presenters

Richard Liskov, Special Counsel, Chadbourne & Parke LLP
Donald J. Mros, Counsel, Chadbourne & Parke LLP

• For a copy of the PowerPoint presentation click here.

• For a copy of the presentation materials click here.

For more information and forms for CLE credit, please contact, Tracie Kiernan at