Northeastern Insurance files Chapter 15 in New York
Northeastern Insurance filed for Chapter 15 bankruptcy after New York opened a window for old sex abuse claims. The Bermuda captive ceased writing policies in 2017 and planned an orderly shutdown, with sufficient funds set aside. The 2019 Child Victims Act brought 55 lawsuits from events that happened as long as 40 years earlier, when victims could not sue under previous time limits.
Court-appointed liquidators asked a federal judge in Manhattan to recognize the foreign bankruptcy case. The insurer covered hospitals and Jewish charities for medical mistakes, car crashes, and worker injuries. Assets will fall short of the company’s obligations once all claims are paid.
