The U.S. Bankruptcy Court for the Southern District of New York recently prohibited insurers from terminating debtors' insurance contracts based on so-called "cesser" clauses, which provided for the automatic termination of insurance coverage upon the commencement of proceedings under any bankruptcy or insolvency law. LaMonica v. N. of Eng. Protecting & Indem. Ass'n Ltd. (In re Probulk Inc.), 407 B.R. 56 (Bankr. S.D.N.Y. 2009).
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USA, New York, Insolvency & Restructuring, Insurance, Litigation, Reed Smith LLP, Bankruptcy, Debtor, Injunction, Board of directors, Preliminary injunction, Subject-matter jurisdiction, Exclusive jurisdiction, US Code, Trustee, United States bankruptcy court, US District Court for the Southern District of New York
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