September 29, 2004, is the deadline for KWELM insurance claims to be filed with supporting evidence. Companies with KWELM coverage for long-tail liabilities (asbestos, silica, pollution) must file claims on or before that date, or their claims will be forever barred.
KWELM is an acronym for five London insurers --Kingscroft Insurance Co. Ltd., Walbrook Insurance Co. Ltd., El Paso Insurance Co. Ltd., Lime Street Insurance Co. Ltd. and Mutual Reinsurance Co. Ltd. The KWELM companies frequently share major portions of London policy limits. For more information, visit KWELM's Web site at www.kwelm.com.
KWELM’s runoff plan was created in 1993. With accelerated runoff now, KWELM anticipates paying a bulk of its $1.3 billion in funds to policyholders over the next two to three years. Currently, KWELM pays between 44 and 62 cents on the dollar for agreed claims. But KWELM administrators predict an increase to 58 to 76 percent of sums owed being paid to policyholders.
About 90 percent of KWELM’s 100,000 policyholders are American companies. Many American companies have KWELM coverage for long-tail liabilities such as asbestos, silica, pollution or environmental or hazard claims. KWELM primarily wrote U.S. casualty and liability policies between 1972 and 1990. Companies insured by Lloyd’s and the London Market during the 1970s and 1980s often have substantial KWELM coverage. If a company may have long-tail risks or clams insured by Lloyd’s and the London Market, odds are it needs to file with KWELM before the September 29 deadline.
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