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Expert Analysis

State Law Split: Transactions Assigning Insurance Rights

Law360, New York (January 17, 2012, 1:27 PM EST) -- It is common, if not universal, for a sale of corporate assets and liabilities to include an assignment of the rights to insurance for those assets and liabilities from the seller to the buyer. Whether courts will recognize the intent of the parties and honor the transfer of insurance rights, however, depends on the state law applicable to the analysis. Two recent cases highlight this important distinction, which is especially relevant in transactions involving companies with long-tail liabilities such as environmental and asbestos claims....

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