Jonathan Bank and Al Bottalico, both of Locke Lord’s Los Angeles office, provided legal insight in an article examining Rhode Island’s run-off legacy transfer system. The lawyers note that the protected cell structure could be an important tool in helping the Rhode Island market take off. According to Bank and Bottalico, “the protected cell option, if widely accepted by the regulators, would be an easier and/or more efficient process.”
In addition, Bank and Bottalico note: “Regulation 68 sets a high bar to ensure a solvent run off. Business to be transferred must have a natural expiration which occurred more than 60 months prior to the filing of the insurance business transfer plan and be in a closed book of business or a reasonably specified group of policies.”
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