Who We Are

Andrew Rothseid, Principal of RunOff Re.Solve, designs and executes solutions that provide insurers, reinsurers, cedents, policyholders, and regulators with legal and financial finality from run off captive and legacy liabilities. To find out more, please visit http://runoffresolve.com/

Rhode Island House Bill 8163, amending certain provisions of the statute, Voluntary Restructuring of Solvent Insurers (the “Rhode Island Statute”), is scheduled for a vote, tomorrow, June 19, 2018.

The essential elements to House Bill 8163 are to:

  • Eliminate the language in the Rhode Island Statute indicating that portfolios transferred under insurance business transfer plans are done so “for the sole purpose of effecting a voluntary restructuring under this chapter”;
  • Expand the use of protective cell structures for voluntary restructuring activities; and
  • Define what constitutes as a “voluntary restructuring” as something more than a commutation plan. Under the amendment proposed in House Bill 8163, a voluntary restructuring:

“means the act of reorganizing the legal ownership, operational, governance, or other structures of a solvent insurer, for the purpose of enhancing organization and maximizing efficiencies, and shall include the transfer of assets and liabilities to or from an insurer, or the protected cell of an insurer pursuant to an insurance business transfer plan. A voluntary restructuring under this chapter may be approved by the commissioner only if, in the commissioner’s opinion, it would have no material adverse impact on the insurer’s policyholders, reinsureds, or claimants of policies subject to the restructuring.”

A copy of the proposed House Bill 8163 is available here.

If passed, the Rhode Island Statute will provide increased options and greater flexibility to (re)insurers that wish to separate and transfer portfolio of legacy commercial liabilities pursuant to a transparent regulatory and court supervised process.

Further detail regarding House Bill 8163 is available here.

Who are RunOff Re.Solve?

Traditional solutions to legacy issues – such as sale or reinsurance – can leave huge amounts of value on the table. Today’s more innovative solutions can secure finality from the expense and distraction associated with legacy liabilities and release more funds to all affected stakeholders. However, they require specialized knowledge and experience in execution that is generally not available within brokers or reinsurers.

This is where RunOff Re.Solve comes in. We solve problems. As needed, we identify, assess, and resolve exposure, organizational, regulatory and capital issues facing the insurance industry.

From the first, and to date, only successful Rhode Island commutation plan to the recent settlements of liabilities of insolvent insurance exposures at Westmoreland Casualty and Rockwood Insurance, we have pioneered innovative approaches to accelerated closure. Alongside the specialist knowledge, we have the tenacity, legal, and relationship skills to deliver these capital releasing solutions for our clients. The more complex and seemingly intractable the problem, the more you should talk to us.

Feel free to talk to us

We would be pleased to speak or meet with you to discuss the issues raised here or other aspects of capital, enterprise, or risk management.