In Re Liquidation of Integrity Insurance Company: Cutting Off the “Long-Tail” of IBNR Claims
The memo discusses a recent decision by the New Jersey Supreme Court involving the insolvent estate of Integrity Insurance Company that has significant implications for reinsurer liability in insurer insolvency proceedings. The decision holds that incurred but not reported (IBNR) claims do not qualify for participation in the final distribution of an insolvent insurer's estate under New Jersey's insurer insolvency statute because such claims are contingent and not "absolute," and therefore cannot support a claim by the liquidator for reinsurance recovery.