Insurance Receivership Law Firm Represents Court-Appointed Receivers and Claimants

Arizona and California licensed attorneys deliver results with more than 50 combined years of experience

The collapse of a financially-troubled insurance company is no small event. In most cases, insurance companies do not rehabilitate or liquidate through the federal bankruptcy process, but through state-administered receivership proceedings. Generally, the domiciliary state has jurisdiction and receivership proceedings commence in the courts of that state. The first order of business is the appointment of a receiver or liquidator (most often the state’s insurance director), and the takeover of the administrative functions of the troubled company. The second order of business is the marshalling of assets, reduction of debt, and the payment of legitimate claims through the state statutory systems of priority. The  third order of business is to determine whether the troubled insurance entity has any claims against directors, officers, attorneys, accountants, actuaries, and others whose actions and omission may have caused or contributed to the demise of the company. Van Cott & Talamante, PLLC is among a select group of law firms nationwide with the skill and experience to assist court-appointed receivers with all aspects of a receivership. Joyce Van Cott and Ryan Talamante have worked extensively in this area since 1989.

Major insurance receivership clients

Since 1989, the firm has represented court-appointed receivers in the following major receivership cases. In these cases, the firm has provided a wide range of advice and services related to the administration of the estates and has represented the receivers in bringing and defending litigation on behalf of or against the receivership estate. In all but one of the following cases, the firm represented the receiver in litigation against former management and shareholders, and professional advisors.

  • In re Farm and Home Life Insurance Company (Arizona life insurer)
  • In re AMS Life Insurance Company (Arizona life insurer)
  • In re Diamond Benefits Life Insurance Company (Arizona life insurer)
  • In re Premier Healthcare, Inc. (Arizona health insurer)
  • In re PMI Mortgage Insurance Co. (Arizona mortgage insurer)
  • In re South Carolina Insurance Company (South Carolina casualty insurer)
  • In re Consolidated American Insurance Company (South Carolina casualty insurer)
  • In re American Bonding Company (Arizona bonding company)

With the extensive experience gained from many years aligned with insurance receivership professionals, the firm is well-qualified to handle any receivership matter on behalf of court-appointed receivers, liquidators, and conservators.

What types of insurance receiverships are there?

When an insurer runs into financial trouble, it may be placed into one of three possible types of receivership, which are:

  • Conservation — In a conservation receivership, the state works with the troubled insurer to maintain business operations while exploring solutions to its problems. If solutions work, the company may be released from receivership. Otherwise, it will proceed to one of two remaining options.
  • Rehabilitation — In this case, the state takes control over the company, including its assets and attempts to restore it to solvency. Alternatively, a rehabilitation plan can propose to wind up the insurer's operations and pay off its liabilities in a manner that provides a "softer landing" for policyholders and creditors than a liquidation order. 
  • Liquidation — The state develops a plan to distribute the remaining assets to honor policyholder terms.

The attorneys at Van Cott & Talamante, PLLC are familiar with each type of receivership and have provided skilled litigation services and advice to court-appointed receivers in all types of cases.

Help for claimants

With their extensive experience in insurance receivership matters, Van Cott & Talamante, PLLC are uniquely positioned to advise and represent individuals and businesses that have claims against troubled insurance companies. State insurance receivership statutes and rules are complex, and are different from federal bankruptcy system and even different from state-to-state. They require careful attention when presenting a claim to a court-appointed receiver. Van Cott & Talamante, PLLC can help guide you through the process of making a proper and timely claim in order to obtain the best results from troubled and difficult situation

Contact a respected Phoenix insurance receivership law firm for a free consultation

Insurance receivership is a complex area of practice that requires skilled guidance grounded in experience. If you need litigation assistance in an insurance or commercial receivership, contact Van Cott & Talamante, PLLC at 602.638.3289 or contact us online for a complimentary appointment.