Transferring Books of Business: Recent Case Law
November 18, 2009
Books of insurance business may be transferred for a variety of reasons, including the generation of revenue for the transferor insurer and cleaning the business out of an insurer to create a "clean shell" for sale. Two recent cases demonstrate both the pitfalls of the process and how it can be done successfully. Ironically, the author was an expert witness in both cases.
J.C. Penney Life Ins. Co. v. Transit Casualty Co., 2009 Mo. App. Lexis 1378 (Ct. App. Mo.)
As a prelude to the sale of Beneficial Fire & Casualty Co. to J.C. Penney Life Insurance Co., Beneficial …