Capital mkt. claims-paying reliability challenged.

National Underwriter Property & Casualty-Risk & Benefits Management, November, 1997 by Lonkevich, Dan

Securities class-action suits against Lloyd's of London by American Names are but a distant memory for many, but the threat remains palpable for those considering the capital markets as a mechanism to finance risk. The possibility of having to sue to get claims paid by capital market participants was debated by a panel of experts here during the closing session of the National Association of Independent Insurers annual meeting.

The capital markets will have to address the issue of whether in the event of a significant loss, they will honor their contractual commitments, said Gregory Butler, chief executive officer of the California Earthquake Authority--a public-private partnership that offers earthquake insurance policies, designed to return stability to...

Read the rest of this article with a Free Trial at HighBeam Research.

Premium Content Partnership | HighBeam Research provides an in-depth online archive library of reference works.