Segmentation of Asbestos Exposures
Agreement for a specific monetary sum
Lump sum payment or scheduled over defined timeframe
Agreement on specified amount of coverage to be provided
May include annual caps on payments
Payments made only for valid claims
Includes producers of asbestos–containing products with whom the Company and 15 other insurers agreed to provide specified amounts of coverage and terms as to how coverage could be accessed
36 asbestos defendants are parties to this agreement
Active management of individual claim files by adjusters and case managers
Close monitoring of development patterns of reported claims, jurisdictions where actions have been filed, the nature of alleged exposures, settlement values of similar claims, and the role other insurance may have in the settlement of these claims
Evaluation of fact patterns and potential coverage obligations
Evaluation of assumed reinsurance
Coverage disputes with policyholders
Disputes with some policyholders in bankruptcy, pending resolution of bankruptcy proceedings
Direct actions by underlying asbestos claimants (not policyholders)
Cases may go to trial or reach settlement prior to active litigation
Policyholders With Settlement Agreements