As a safety net for policyholders in times of insurance company distress, the state-based guaranty system must partner with experienced legal advisers to oversee the rehabilitation or liquidation of troubled companies. Faegre Baker Daniels has represented the life, health and annuity guaranty system during national insolvencies for 40 years and has worked with receivers and state guaranty associations in all 50 states and Washington, D.C.

We assist with solvency monitoring and insolvency protections. When a company becomes distressed, we join the task force assembled by the guaranty system to manage the insolvency. As part of the task force, we ensure that covered claims are paid and covered policies transferred to new insurers. Our team also assists with troubled company supervision, takeover and administration, asset recovery and litigation, rehabilitation and liquidation plans, reinsurance, court proceedings and tax issues related to insolvency. We supply a full range of legal, business consulting, project management and communication services to the guaranty system during these matters.

The expertise our team provides during insolvencies is proven. We have handled many multi-state insolvencies and worked on the largest U.S. insolvencies the system has ever encountered, which included policyholders in all 50 states. We have worked with insurance commissioners in more than half the states that have had to oversee aspects of insolvent insurance companies. 

We also assist the system in reviewing proposed transactions such as dispositions of blocks of business, indemnity and assumption reinsurance agreements, and rehabilitation/liquidation agreements.

Our government team and FaegreBD Consulting, our federal affairs division, educate and advocate for guaranty systems before state lawmakers, Congress and state and federal agencies.