TYPES OF TRANSACTIONS

I.  Rhode Island  Company Formation or Re-domestication – when considering an IBT, the transfer must be to a Rhode Island domiciled insurance company

II.  Insurance Business Transfer (IBT) (Rhode Island) – the IBT is an effective restructuring tool for all insurers.  IBTs are very versatile and can be applied to discrete portfolios or more generally to change a company’s whole business.  The IBT applies to reinsurance of any line of business other than life and insurance of any line of business other than life, worker’s compensations and personal lines insurance. In situations where the restructuring includes business not encompassed by the IBT, the client may want to consider an IBT + LPT for a Total Solution. Read More

III.  Loss Portfolio Transfer (LPT) – a LPT is a reinsurance transaction in which loss obligations that are already incurred are ceded to a reinsurer.  It provides some economic finality but no legal finality.

IV.  Commutation Plan (Rhode Island) – this is a procedure pursuant to the RI Voluntary Restructuring Act whereby a solvent insurer or reinsurer may extinguish its liabilities for all claims of its creditors – past or future -and then cease operations. Read More