Protect your insurance rights when your insurance company becomes insolvent

On March 11, 2021, Bedivere Insurance Co. (Bedivere) began liquidation proceedings in Pennsylvania. Bedivere holds the historical environmental and asbestos liability insurance obligations of numerous other insurance companies, primarily OneBeacon and Commercial Union. Policyholders have until December 31 to file proof of claim forms in connection with the Bedivere liquidation. Failure to meet the deadline could prevent collection.

Pennsylvania Insurance Insolvency Process

Normally, corporate insolvency proceedings are governed by federal bankruptcy law; however, in the case of an insolvent insurance company, state law applies. In Bedivere’s case, the laws of the Commonwealth of Pennsylvania govern its liquidation because Bedivere is domiciled in Pennsylvania. Under Pennsylvania law, the Pennsylvania Insurance Commissioner acts as liquidator and the Court of the Commonwealth of Pennsylvania oversees the liquidation process. The Commonwealth Court has jurisdiction at first instance for reorganizations and liquidations of insurance companies. Appeals from decisions of the Commonwealth Court, rendered when it sits in its original jurisdiction, are made to the Supreme Court of Pennsylvania.

Impact of Bedivere’s insolvency

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