Direct Actions Against Insurers to Recover Insurance Policy Proceeds for Defunct Defendants

Federal and state courts are split on the issue of whether a plaintiff may bring a direct action against the insurers of a dissolved corporation to recover insurance policy proceeds. You might ask, “Why would plaintiffs want to waste time suing insolvent corporations?” The answer is that insurance contracts may be considered the property of a dissolved corporation, even after the corporation’s winding-up period has expired. 

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