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Dr. Charles Mullin to present on the economic
impact of different allocation approaches
WASHINGTON, D.C., November 2, 2005—Bates White announces
that Dr. Charles Mullin will be speaking at Mealey’s “All
Sums: Reallocation & Settlement Credits Conference”
in Boston, on November 7, 2005.
Dr. Mullin will participate in a panel discussion about the
effects that competing approaches to settlement credits have on
insurance policy values as well as the incentives these approaches
create. His presentation will focus on two methods for determining
settlement credits—policy limits and settlement amounts
(“pro tanto”). Dr. Mullin will show that switching
from policy limits to settlement amounts unambiguously increases
the incentive to settle. This incentive, however, is financed
by the non-settling insurers. Specifically, settling policies
under settlement amounts both increases and accelerates the payments
of non-settling insurers. The introduction of insolvency risks
among insurers complicates the analysis, but does not alter the
fundamental trade-offs between the two methods.
This conference will provide attorneys and insurers with a solid
foundation on the key legal and economic issues surrounding reallocation
and settlements in cases governed by state law that hold insurers
liable for “all sums.” Topics to be covered include
the differences and similarities in dealing with primary v. excess
carriers, reallocation with non-settled insurers v. settled insurers,
and all sums v. pro rata allocations.
Click
here to download Dr. Mullin’s presentation.
About Bates White
Bates White is a national economic consulting firm of more than 150 professionals.
Established in 1999, Bates White offers consulting services in economics,
finance,
and business analytics. Bates White has offices in Washington, D.C., and San
Diego, Calif.
www.bateswhite.com
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