Whole Life Insurance Policy and Bankruptcy
February 25th, 2008 . by adminBankruptcy courts – never hospitable for determination of coverage disputes have historically characterized whole life insurance policy proceeds as failing to be the property of the estate. If policy proceeds are not property of the estate, coverage actions might not be subject to the automatic stay – even though the policy itself is property of the estate. This would allow an insurer to litigate coverage disputes arising under the policies in a more favorable forum.All of this may create some entitlement not available – or even imaginable -outside of bankruptcy for debtor-insureds or their bankruptcy estates.
