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AIRROC (Association of Insurance & Reinsurance Run-Off Companies) Source Material on Insurance Legacy Transactions, Insurer Business Transfers (IBTs) and Divisions (CDs) IBTs and CDs are developing restructuring mechanisms to allow an insurer to transfer to another insurer a book of existing insurance policies and accompanying assets with legal finality so that the original insurer becomes no longer liable for those policies and the succeeding insurer becomes the sole party responsible. An IBT does so by transferring a portion of a company’s existing business to another. The CD does so by dividing the original insurer so that each of the two resulting insurers retains a portion of the original insurer’s policies and assets. IBTs in the US to a large extent derive from a UK precedent, a so-called Part VII Transfer. NAIC Source MaterialIndustry Comments to NAIC MaterialIndustry Background PresentationsRelevant ArticlesPart VII - UK Regulatory Guidance and BackgroundState laws and regulationsNotable US Precedent and Legal ActionDockets of US IBT and CD Proceedings |