Timothy P. Law, left, and Christopher D. Molony, right, of Reed Smith. Courtesy photos
On March 11, 2021, Bedivere Insurance Co. (Bedivere) entered liquidation proceedings in Pennsylvania. Bedivere holds the historic environmental and asbestos liability insurance obligations of numerous other insurance companies, primarily OneBeacon and Commercial Union. Policyholders have until Dec. 31, to file proof of claim forms in the Bedivere liquidation. Failure to comply with deadline could prevent recovery.
Pennsylvania Insurance Insolvency Process
Ordinarily, 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 Pennsylvania Commonwealth Court supervises the liquidation proceedings. The Commonwealth Court has original jurisdiction over insurance company rehabilitations and liquidations. Appeals from Commonwealth Court decisions, made when sitting in its original jurisdiction, are made to the Pennsylvania Supreme Court.
