Voidable Preference In Pa. Insurer Liquidations?

Law360, New York (December 4, 2009, 3:33 PM EST) -- An innocent policyholder may not realize that a claim payment it receives on its policy may be subject to a preference claim should its insurer be placed into an insurance company receivership even if the insured had no knowledge of the insurer’s perilous financial condition when the payment was made.

Whenever a policyholder receives a payment from a financially troubled insurer, the policyholder may be faced with a later voidable preference challenge from the liquidator of the insurer (or rehabilitator in a few states) should the...
To view the full article, register now.