Commitments And Contingencies

9 Months Ended

Sep. 30, 2020

Commitments And Contingencies [Abstract]

Commitments And Contingencies

8. COMMITMENTS AND CONTINGENCIES

In the ordinary course of business, the Company is involved in lawsuits, arbitrations and other formal and

informal dispute resolution procedures, the outcomes of which will determine the Company’s rights and

obligations under insurance and reinsurance agreements. In some disputes, the Company seeks to enforce its

rights under an agreement or to collect funds owing to it. In other matters, the Company is resisting attempts by

others to collect funds or enforce alleged rights. These disputes arise from time to time and are ultimately

resolved through both informal and formal means, including negotiated resolution, arbitration and litigation. In

all such matters, the Company believes that its positions are legally and commercially reasonable. The Company

considers the statuses of these proceedings when determining its reserves for unpaid loss and loss adjustment

expenses. 

Aside from litigation and arbitrations related to these insurance and reinsurance agreements, the Company is

not a party to any other material litigation or arbitration. 

The Company has entered into separate annuity agreements with The Prudential Insurance of America (“The

Prudential”) and an additional unaffiliated life insurance company in which the Company has either purchased

annuity contracts or become the assignee of annuity proceeds that are meant to settle claim payment

obligations in the future. In both instances, the Company would become contingently liable if either The

Prudential or the unaffiliated life insurance company were unable to make payments related to the respective

annuity contract.

The table below presents the estimated cost to replace all such annuities for which the Company was

contingently liable for the periods indicated:

At September 30,

At December 31,

(Dollars in thousands)

2020

2019

The Prudential 

$

141,488

$

141,703

Unaffiliated life insurance company

34,441

35,082