Commercial Tort Claims and Healthcare Insurance Receivables Security Interests

Summary

This practice note describes how to perfect security interests in commercial tort claims and health care insurance receivables. The perfection of these assets is governed by Article 9 of the Uniform Commercial Code (UCC), which addresses the creation and enforcement of security interests in personal property and fixtures. However, unlike many other asset types described in Article 9, these items of collateral present challenges that lawyers should be aware of. For example, commercial tort claims must be granted with more specificity than is typical, and perfection of health care insurance receivables may be impacted by federal law and regulation, particularly with respect to Medicare and Medicaid receivables.