The document discusses sexual molestation litigation and recovering costs through historic insurance policies. As sexual abuse claims increase due to lifted statutes of limitations, organizations face significant financial impacts. Coverage is more likely found in older policies from 1960-1980 that lack modern exclusions. However, locating and negotiating with multiple historic insurers presents challenges in determining injury dates, triggered policies, cost allocations, and insurer participation. Willis Towers Watson provides services to help clients overcome these challenges through insurance archaeology, claim dispute resolution, loss allocation modeling, and insurance asset valuation.

1. Sexual molestation litigation
insurance recovery
Integrated Casualty Consulting
Many organizations have faced claims by individuals alleging they
were sexually abused at some point in the past. With public pressure
growing on state lawmakers to lift or suspend the statute of limitations
on filing sexual molestation claims, such claims are likely to increase.
These exposures can have a significant negative financial impact on
an organization. Fortunately, historic insurance assets can provide
critical funding for defense and settlement/verdict costs.
Coverage for these claims is more likely to be found in the policies in
force at the time of the alleged misconduct, which is often the 1960s
through the 1980s, rather than under the policies in effect when
the claims are made. While older policies usually don’t contain the
exclusions found in today’s policies, there are many other challenges
to obtaining insurer participation in defense and any settlement/
verdict costs. For example:
ƒƒ It is generally the policyholder’s burden to locate the old policies
ƒƒ Insurers may not agree:
ƒƒ When the injury took place
ƒƒ Which policies are “triggered” by the allegations
ƒƒ How costs should be allocated among multiple policies
ƒƒ Negotiating the respective participation of numerous insurers can
be difficult
What services we offer
Insurance archaeology
We reconstruct historical insurance programs and assist you in
locating policies by:
ƒƒ Reviewing internal historic records and archives
ƒƒ Interviewing current and former personnel
ƒƒ Contacting former insurance brokers
ƒƒ Helping to identify and contact other potential outside sources of
policy information
ƒƒ Contacting insurers to coordinate additional research
Insurance claim dispute resolution
We help clients avoid the risk, expense and delay of coverage
litigation by leading or supporting insurance recovery efforts by
providing:
ƒƒ Consultative advice and guidance on the development and
execution of insurance recovery strategies
ƒƒ A channel of communication to senior, “decision maker” claim
contacts at major insurance markets
ƒƒ Tactical support for numerous claims that impact numerous
insurers
Our specialized liability claim consultants have the experience and expertise needed to
overcome these insurance recovery challenges.

2. About Willis Towers Watson
Willis Towers Watson (NASDAQ: WLTW) is a leading global advisory,
broking and solutions company that helps clients around the world
turn risk into a path for growth. With roots dating to 1828, Willis Towers
Watson has 40,000 employees serving more than 140 countries.
We design and deliver solutions that manage risk, optimize benefits,
cultivate talent, and expand the power of capital to protect and
strengthen institutions and individuals. Our unique perspective allows
us to see the critical intersections between talent, assets and ideas –
the dynamic formula that drives business performance. Together, we
unlock potential. Learn more at willistowerswatson.com.
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Loss allocation modeling
We have the capabilities to analyze how insurance programs may
offset losses, and we offer solutions to provide you with:
ƒƒ Mathematical results to develop settlement demands and support
settlement strategy
ƒƒ A framework for analyzing positions taken by insurers during
settlement negotiations
ƒƒ The ability to test the financial impact of varying assumptions about
legal uncertainties
ƒƒ An estimation of insurance asset value available to offset current
and potential future liabilities
ƒƒ Analysis of cash flow requirements
Insurance asset size estimation
Valuing insurance receivables — we help you understand how key
variables may impact the value of potentially available coverage.
These variables often include:
ƒƒ Choice of law used to interpret the insurance contracts
ƒƒ “Vertical” versus “horizontal” exhaustion
ƒƒ Prior limit erosion/exhaustion
ƒƒ Trigger of coverage theories
ƒƒ Loss allocation method applied
ƒƒ Number of “occurrences” at issue
ƒƒ Insolvent insurers
ƒƒ Applicability of aggregate limits
ƒƒ Gaps in coverage
ƒƒ Treatment of defense costs
ƒƒ Applicability of deductibles/self-insured retentions
ƒƒ Relevant coverage exclusions
ƒƒ Applicable clauses/provisions
ƒƒ Prior settlement(s) with insurers
ƒƒ Shared coverage
ƒƒ Limits available under multi-year insurance contracts or “stub”
policies
Willis Towers Watson has a dedicated liability consulting team
that can deliver results; we are uniquely suited to help you with
claim solutions.
For additional information contact:
James F. Dorion
Head of Liability Claim Consulting & Carrier Relations
Integrated Casualty Consulting
D 212 915 8917
M 203 908 1236
james.dorion@willistowerswatson.com