Risk Management
In a market characterized by unprecedented volatility, the legal and regulatory issues surrounding insurance matters are of critical concern. The Risk Management attorneys of Sonnenschein’s Insurance Regulatory Practice regularly advise corporate risk managers, their brokers, senior management and corporate counsel on significant insurance and reinsurance matters, including matters of self-insurance, protection of policyholder collateral, direct procurement, workers’ compensation, premium allocation and taxation, claims-handling, risk retention and risk purchasing groups, domestic and off-shore captive facilities, insurer and reinsurer insolvency and other strategic insurance matters.
Our in-depth understanding of the state and federal regulatory environments combined with our overall insurance industry and corporate expertise allow us to propose swift solutions to our clients when faced with regulatory obstacles to their business practices. Our nationally recognized team delivers strategic solutions that address the legal, practical and business issues our clients face in today’s unpredictable marketplace, making us the go-to law firm for risk management needs.
Examples of our Risk Management Services
- Negotiate commutations, novations, loss portfolio transfers, policy buy-backs and other disengagement transactions with financially troubled insurers and excess insurers.
- Advise in the development of domestic and off-shore captive facilities (including single parent, association, group, agency and rent-a-captive facilities) and the negotiation of related reinsurance agreements.
- Negotiate cut-through endorsements for inclusion in captive reinsurance structures.
- Advise regarding the form, review, protection and return of policyholder collateral.
- Advise regarding the transition of policyholder collateral from cash to a segregated trust account.
- Advise regarding the sale or purchase of corporations or their assets related to the transfer of insurance coverages, including significant workers’ compensation matters related to M&A activity.
- Provide general support on insurance issues related to M&A transactions.
- Advise regarding premium plans (such as deferral, retrospective rating, policyholder dividends, excess loss premium, incurred loss and paid loss plans).
- Advise regarding issues related to financially impaired companies, including insurer insolvency, voidable preferences, fraudulent transfers, recoupment, the reduction/return of policyholder collateral, proof of claim submission and guaranty fund protection.
- Advise regarding alternatives to traditional workers’ compensation programs such as self insurance certification, PEOs, group insurance options, employee leasing and large deductible programs.
- Review and negotiate agreements related to association affinity insurance programs, including insurance proposals, agreements with third-party administrators and brokers, profit sharing and royalty agreements, service agreements, captive programs and captive reinsurance programs.
- Perform insolvency audits to advise corporate policyholders regarding the structure and provisions of existing and proposed insurance programs to minimize insurer insolvency exposure.
- Advise regarding issues related to direct procurement, industrial insured exceptions, surplus lines placements and related premium tax issues.
- Review and negotiate agreements related to corporate insurance programs, including insurance proposals and agreements with third-party administrators, brokers and captive reinsurance programs.
- Advise clients regarding the adequacy and compliance of corporate insurance structures.
- Advise clients regarding strategies for the run-off or transfer of long-tail liabilities.
- Advise clients regarding the development and implementation of strategic Enterprise Risk Management initiatives.
- Advise clients regarding the negotiation of alternative pricing within the insurance market.
