Key Coleman, CPA, CFA - Executive Director and Founder Serving Clients Nationwide
What we do
Economic Damages Analysis
Insurance-related Damages Analysis
Insurance-related Damages Analysis
Analyzing damages is a critical component of any litigation matter. Yet, articulating economic damages is more complex than simply adding numbers on a page. Proper damages analysis requires extensive understanding of the facts and circumstances of each individual matter. An economic damages expert witness armed with the facts can rende
Analyzing damages is a critical component of any litigation matter. Yet, articulating economic damages is more complex than simply adding numbers on a page. Proper damages analysis requires extensive understanding of the facts and circumstances of each individual matter. An economic damages expert witness armed with the facts can render appropriate opinions while pinpointing flaws in the opposing expert's opinions. Opposing economic damages experts may put forth opinions supported by hundreds of pages of schedules, yet, a single improper assumption can undermine the entire analysis.
Insurance-related Damages Analysis
Insurance-related Damages Analysis
Insurance-related Damages Analysis
Assessing damages in an insurance or reinsurance setting may require specialized skills. An experienced insurance damages expert who knows the landscape and nomenclature may be able to get to the right answer more efficiently while avoiding costly mistakes. Experience with underwriting, reinsurance, claims and insurance accounting issue
Assessing damages in an insurance or reinsurance setting may require specialized skills. An experienced insurance damages expert who knows the landscape and nomenclature may be able to get to the right answer more efficiently while avoiding costly mistakes. Experience with underwriting, reinsurance, claims and insurance accounting issues can save hours in coming up to speed on matters involving insurers, reinsurers, brokers, MGAs, MGUs and TPAs.
Forensic Investigation
Insurance-related Damages Analysis
Forensic Investigation
Seemingly routine forensic inspections can evolve into significant disputes overnight. The need for a forensic expert witness is often compelling. By engaging us early, we can provide outside counsel with valuable feedback at every step in the process. The first step is for us to meet with counsel and come up with a plan to assess the
Seemingly routine forensic inspections can evolve into significant disputes overnight. The need for a forensic expert witness is often compelling. By engaging us early, we can provide outside counsel with valuable feedback at every step in the process. The first step is for us to meet with counsel and come up with a plan to assess the financial records at issue. As our analysis progresses, we keep counsel informed so that they can make recommendations to the client. Investigations are often fraught with surprises, but having confidence in the quality and timeliness of information can have a positive impact on the outcome.
Key Coleman, CPA, CFA - Executive Director and founder
Key Coleman serves as Executive Director and Founder of LEFCG. He assists his clients by bringing financial expertise into the realm of litigation and arbitration that helps clarify intricate pleadings and expert opinions. Key performs damages analysis, litigation support and serves as a damages expert witness.
Key began his career in industry, but later transitioned to a Big Four accounting firm where he rose to the level of partner in their dispute analysis and forensics division. He then held high level positions at other internationally recognized accounting and consulting firms prior to starting his own firm.
As a current professor of Finance at the university level, Key is adept at conveying complex financial information to a broad audience who must use this information for critical decision-making.
Contact Information
Key Coleman may be contacted by telephone at (215) 779-5452 or by e-mail at: key.coleman@lefcg.com
Specialties
Key is an economic damages expert with numerous areas of expertise. His experience includes:
- Business breakups
- Business interruption
- Commercial disputes
- Contract disputes
- Economic wage loss
- Financial services
- Healthcare
- Insurance
- Intellectual property
- Lost profits
- Manufacturing
- Post-acquisition purchase price disputes
Insurance and Reinsurance
Key has an extensive background and expertise in damages analysis in the insurance and reinsurance industry, and is often selected as an insurance damages expert. He has knowledge and/or expertise in the following areas:
• Accounting analysis (Statutory and GAAP)
• Agencies and Brokers E&O
• Business Interruption
• Claims analysis
• Forensic Accounting and Insurance Investigations (including MGA and TPA inspections)
• Managing General Agencies (MGAs)
• Regulatory matters
• Reinsurance matters
• Run-off and Insolvency analysis
• Third Party Administrators (TPAs)
• Underwriting analysis
• Workers’ Compensation
Key has cross-functional skills in many of the areas where insurance disputes arise, including: underwriting, claims, reinsurance and accounting. In fact, he is one of the few experts nationwide who hold both the CPA and the CPCU designations.
By understanding the inner workings of insurance companies and their service providers (agents, brokers, MGAs, reinsurers and TPAs), Key is uniquely able to provide special insights ot his clients as an insurance damages expert or in a consulting capacity.
Recent Matters
Recent engagements include:
- Agent/Broker dispute
- Business breakup in the investment industry
- Business interruption
- Contract dispute
- Forensic analysis of investment accounts (tracing cash)
- Insolvency analysis for a state insurance guaranty fund
- Intellectual property dispute
- Life insurance disputes
- Lost wages analysis
- Manufacturing company dispute
- Property & Casualty disputes
Insurance Insolvency
Insurance Insolvency is the Underlying Cause of Many Insurance and Reinsurance Disputes
The need for an insurance damages expert often arises in the context of insurer insolvency or the threat of insolvency. There are numerous stakeholders in insolvencies that may include: reinsurers, ceding companies, policyholders, MGAs, insurance company receivers, state guaranty funds and the prior years' auditor of the insolvent company. Disputes arise as each stakeholder seeks to protect its own interests. Often, once liability is established in such disputes, quantification may still be at issue.
Recent Insolvencies
Recent insolvencies include Arrowood which was taken into liquidation in November 2023:
Below are certain resources that may be helpful when dealing with insurance insolvency:
Departments of Insurance
Since insurance insolvency is handled at the state level, state departments of insurance can be a first-line source of information.
Insurance Guaranty Associations May Pay Some or All of Certain Claims When an Insurer Becomes Insolvent
In the case of insurer insolvency, depending upon the state of residence of the policyholder, the appropriate state guaranty association may pay some or all of certain claims up to a specified limit. Guaranty associations for property and casualty claims are separate from those that respond to life insurance claims.
Property & Casualty: https://www.ncigf.org/
Life Insurance: https://www.nolhga.com/home.cfm
Policyholders May Have Questions Before an Insurer Becomes Insolvent
Insurance companies may continue operations under the threat of insolvency for many years. The question arises whether the insurer has sufficient reinsurance in place and whether those reinsurers are solvent. In addition, the potential sale of the financially unstable insurer to another insurer could allow the troubled insurer to avoid insolvency altogether. Policyholders and their counsel are keenly interested whether the insurer will have the funds to pay when the claim comes due. Counsel is especially interested in third-party claims since the payout will occur years into the future. As a result, they often monitor potential transactions on the horizon when seeking claim payments from a financially troubled insurer.
https://www.forbes.com/advisor/life-insurance/company-out-of-business/
NAIC Handbook
The National Association of Insurance Commissioners (NAIC) publishes a comprehensive handbook for insurance company receivers.
https://content.naic.org/sites/default/files/publication-rec-bu-receivers-handbook-insolvencies.pdf
Litigation Economic & Forensic Consulting Group LLC can assist with quantification issues relating to insurance insolvency disputes.
Trending Information
Court Closure and General Information
Following the COVID-19 pandemic, it became apparent that certain valuable information regarding the courts was difficult to find in a summary format. Listed below are links to timely information:
New York Courts
Pennsylvania Courts
https://www.pacourts.us/courts/commonwealth-court/calendar
Philadelphia Courts
Articles and Commentary
Key Coleman has written articles and provided commentary to the media on various topics. He has presented in New York, Chicago and Bermuda. His articles have appeared in Asia Insurance Review, AIRROC Matters and numerous other publications. In addition, he has appeared on a closed circuit show called AM Best TV.