The Key to Impairment Litigation: Move Quickly and Be Prepared to Wait


Recovery from impaired and insolvent companies can take decades, but the right steps need to be taken early in the process.


The essential concept is to try to push this along as fast as possible.


R. Mark Keenan, Anderson, Kill & Olick


In theory, litigation involving insolvent insurers is typically pursued with an eye toward obtaining the highest available settlement or judgment on behalf of policyholders. In practice, it could be done for any number of reasons, attorney Mark Keenan said.


“Our goal is to get the most amount of money for the policyholder the quickest,” Keenan said.


Keenan’s advice is to work with attorneys most familiar with a particular state or domicile, and to be prepared to aggressively pursue claims against the liquidator.


Litigation against insolvent insurers typically consumes years and sometimes decades. Keenan cites the example of a New York-based insolvent company that is now rounding its 25th year in litigation.


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