Kimberly Pageau

2 months ago | mondaq.com | Warren Martin Jr. |Michael Medved |Kimberly Pageau

Bankruptcy filings with personal injury claims can pose complexchallenges where self-insured retention obligations of the debtorunder its insurance policies are unfulfilled as of the filingdate. A self-insured retention (SIR) in an insurance policy requiresthe insured (in our case, a bankrupt debtor) to pay the firstdollars settled or awarded on a covered plaintiff's claim, upto a predetermined amount, e.g., $100,000 or $250,000 (or whateveramount is negotiated with the insurer).