Pre-Pleading Security Statutes: Tying the Hands of the Unwary

[This article was originally published in ReinsuranceFocus.com, and does not constitute legal or other professional advice or service by Jorden Burt LLP and/or its attorneys. John Pitblado is an associate with Jorden Burt LLP at the firm's Simsbury, Conn. office.]

Most states have pre-pleading security statutes that require a foreign insurer to post security before it will be allowed to submit a responsive pleading in court after suit has been filed against it. These statutes should be considered in deciding whether to register to transact insurance business in a state, because the security required to be posted in order to …