March 2008

Landmark victory for reinsurers: New Jersey Supreme Court holds that IBNR claims do not qualify for participation in the final distribution of Integrity Insurance Company's estate

In a matter of first impression under New Jersey law that potentially impacts both the  insurance and reinsurance industry and policyholders of insolvent insurance companies, the New Jersey Supreme Court held that the final dividend plan proposed by the liquidator of Integrity Insurance Company should not be approved because it unlawfully allowed incurred but not reported (IBNR) claims to share in the insolvent  insurer’s estate (In the Matter of the Liquidation of Integrity Ins. Co. A-29-07 (NJ Dec 13, 2007)).

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