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Why isnt Far West liquidated under the federal bankruptcy laws? How does liquidation under Nebraska Insurance laws differ from a typical bankruptcy?

April 26, 2017Bankruptcy differ far west Federal Laws liquidated Liquidation

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Why isnt Far West liquidated under the federal bankruptcy laws? How does liquidation under Nebraska Insurance laws differ from a typical bankruptcy?

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The Lancaster County District Court for the State of Nebraska has exclusive jurisdiction over the liquidation based upon federal law referred to as the McCarran-Ferguson Act. Congress has specifically chosen to exempt state insurance statutes from the federal bankruptcy laws by enacting the McCarran-Ferguson Act and by excluding insolvent state insurance companies from the protections of the Bankruptcy Code. State insurance codes parallel in many ways to the Bankruptcy Code.