Fluor Decision Allows Coverage Transfers in Mergers

Policyholder Keeps Coverage Despite Merger
– Business Insurance

Business Insurance interviewed Manatt's Stephen Raptis, a partner in the firm's Insurance Recovery practice, for an article on the California Supreme Court's ruling in Fluor Corp. v. Superior Court of Orange County (Hartford Accident & Indemnity Co.). The decision allows the transfer of insurance coverage in a corporate merger or acquisition without the insurer's consent, bringing the state in line with most other states with regard to the transfer of coverage.

"California was absolutely an outlier," said Raptis. "What this decision did was it gave the court an opportunity to revisit a decision that they thought they'd gotten wrong."

Read the article here