Key Coleman, CPA, CFA, CPCU, ARe

Key Coleman is Executive Director and Founder of Litigation Economic & Forensic Consulting Group LLC (LEFCG). He is a damages expert with experience in a variety of industries. For more than 30 years, Key has specialized in forensics, disputes, damages, and expert testimony. His background is unique in that he has a thorough understanding of several of the functional areas that contribute to disputes, such as sales, operations, accounting, and finance.

One of Key's specialties is the analysis of damages in insurance or reinsurance disputes. He is one of the few experts nationwide who hold both the CPA and the CPCU designations.

Key serves clients nationwide from Greater Philadelphia, but spent the bulk of his career in Chicago where he held high level positions at Grant Thornton LLP and LECG/Smart in their disputes practice. Prior to that, he was a Partner at PricewaterhouseCoopers LLP, where for more than 11 years he performed forensic dispute analysis, damages analysis and investigative work. Prior to his consulting career, Key worked more than eight years for an insurance carrier.

Services

Key Coleman offers the following services:

- Economic 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 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
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
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.

Litigation Support Services

Key Coleman performs damages analysis in general commercial disputes, and is not tied to a single industry. He is available to travel nationwide and frequently works with clients as far away as California. Key's out-of-town clients are pleased to learn that he is as comfortable being deposed by video teleprompter, as he is in person.

Areas of Expertise

Additional Expertise:

General Business Damages, Insurance Agent/Broker, Insurance Customs & Practices, Accounting Analysis, Agencies, Brokers, Claims Analysis, Commercial Disputes, Directors & Officers (D&O), Employment Damages, Agent Errors & Omission (E&O), Force Placed Insurance, Forensic Accounting and Investigations, Investment Advisor Damages Analysis, Insurance Damages, Manufacturing Damages, Managing General Agency MGA/TPA Inspections, PEOs, Reinsurance Damages, Run-off, Insolvency, Wage Loss, Property & Casualty Insurance, Workers Compensation Insurance.

Areas Served

Nationwide (all states)

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Professional Experience

Key has more than 30 years of experience providing business and financial analysis in the insurance and reinsurance industry, with a focus on forensics, disputes, damages and expert testimony. His clients have included insurance companies, reinsurers, insureds, agents, brokers, and attorneys.

Key works from the Greater Philadelphia area, but his practice is nationwide. Prior to coming to Philadelphia, Key spent the bulk of his career in Chicago where he held high level positions at Grant Thornton LLP and LECG/Smart in their disputes practice. Prior to that, he was a Partner at PricewaterhouseCoopers LLP, where for more than 11 years he specialized in providing analysis in connection with insurance and reinsurance disputes. Key began his insurance career in industry where he worked more than 8 years in underwriting and management.

Key performs expert analysis relating to insurance and reinsurance damages. In addition, he performs compliance inspections of insurers' third-party service providers and other consulting services.

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

Licenses

Certifications

• Certified Public Accountant (CPA) licensed in Pennsylvania
• Chartered Financial Analyst (CFA) charterholder
• Chartered Property & Casualty Underwriter (CPCU)
• Associate in Reinsurance (ARe)

Legal Experience & Services

Mr. Coleman engagements have included the following:

- Insurer, Agency, Broker, Policyholder Disputes

• Served as damages expert on behalf of the former Directors & Officers of an insolvent insurance company. Rebutted damages of over $1.2 billion put forth by the receiver. Testified at deposition.

• Served as damages expert in intellectual property matter on behalf of an insurer. Testified at deposition.

• Served as an expert on behalf of one insurer seeking subrogation from another insurer in a matter involving a general liability policy.

• Served as consulting expert on behalf of an insurer seeking damages in excess of $1 billion from a hedge fund.

• Served as expert on behalf of an insurer in a matter alleging damages from the termination of a group of agents.

• Served as an expert on behalf of a workers' compensation insurer, assessing suspected unremitted premium by the policyholder, a Professional Employment Organization (PEO).

• Rebutted alleged damages brought by a terminated MGA. Testified at arbitration.

• Expert in matter between an insurer and MGA. Testified at deposition and arbitration.

• Expert in suit alleging theft of a MGA's proprietary product by an insurer.

• Expert for a major on-line trading company in a dispute with an agency over internet sales

• Expert in "bad faith" case. Deposition testimony on punitive damages and their potential impact on the insurer's solvency.

• Expert on behalf of an insurer in a dispute involving force placed automobile insurance

- Municipalities

• Expert for a large US municipality. Calculated damages from actions of brokers who allegedly by-passed procurement rules to sell excessive risk management services.

• Expert analysis to assist the court in understanding the potential economic impact of removing statutory caps on tort liability for municipalities.

- Reinsurance Disputes

• Expert in litigation between Accident & Health reinsurer and a reinsurance broker, where the reinsurer alleged damages of over $40 million. Testified at deposition. • Rebuttal expert in a matter involving reinsurance on policies covering subprime automobile loans. Testified at deposition.

• Expert in a workers' compensation reinsurance matter involving contingent commission. Testified on both damages and the underwriting process at deposition.

• Subject Matter Expert (SME) on finite reinsurance in the financial audit of 3 large insurers for a Big Four accounting firm.

- Investigations and Inspections

• Inspect records of MGAs, TPAs and program managers for contractual compliance.

• Managed team to investigate the theft of more than $200 million in insurance assets stolen from seven insurers. Traced assets to Swiss accounts to facilitate recovery.

• Investigated alleged self-dealing at a not-for-profit organization and its related-party MGA. Uncovered alleged fraudulent acts which resulted in dismissal of the CEO.

- Insolvency and Runoff

• Consulted for a solvent runoff company, and other troubled companies including a mortgage insurer following the financial crisis. Analyzed potential costs of rehabilitation. Reported findings to department of insurance.

Affiliations

• American Institute of Certified Public Accountants
• PICPA
• ARIAS – Member
• CFA Institute
• CFA Society of Chicago
• CPCU Society – Past President of North Alabama Chapter

Qualifications

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

Publications

Presentations and Publications

Key is a speaker, commentator and writer addressing critical issues facing the industry, having been quoted in numerous periodicals including: Best's Review, Business Insurance, Global Insurance Bulletin, Inside Mortgage Trends, National Underwriter, Reactions, Risk and Insurance and Risk Management Magazine. In addition, he was interviewed by A. M. Best TV relating to the impact of climate change in the insurance industry. His articles have appeared in AIRROC Matters, Business Insurance's Industry Focus, the ABA's Coverage magazine, Captive Insurance Company Reports, Risk Management Magazine, Risk and Insurance, Insurance Digest and The Legal Intelligencer.

A few of Key's publications and presentations include:

• Risk Management Magazine, “Will Climate Change Impact Reinsurance Rates?,” April 1, 2019

• The Legal Intelligencer, “Climate Change and the Boardroom – Have Board Responsibilities Changed?,” March 27, 2019

• The Legal Intelligencer, “Climate Change for the Insurance Industry,” July 21, 2016

• International Association of Defense Counsel (IADC), Speaker at Insurance Bermuda Triangle Event, “Insurance and Reinsurance in a Low Carbon Economy: Is Climate Change the New Mass Tort?,” Hamilton, Bermuda, July 12, 2016

• “The Polar Vortex,” moderator for joint presentation with Reed Smith, Jan. 2014

• Risk Management Magazine, “The Effect of a Hardening Workers Compensation Market,” Key Coleman and Fred Kohm, November 1, 2013

• AIRROC Matters, “AIRROC's Dispute Resolution Process (DRP),” Spring 2013

• Sidley Austin LLP, expert in Mock Trial, Chicago, IL, March 2012

• Drinker Biddle & Reath LLP, panelist for litigation training, Princeton, NJ, May 2011

• Brokers & Reinsurance Markets Association (BRMA), expert witness in Mock Arbitration, Princeton, NJ, April 2011

• Foley Insurance Economic Summit, “Troubled Insurance Companies in the New Economy” speaker, Chicago, IL, October 2010

• Society of Insurance Financial Management (SIFM), “Preparing for and Responding to a Market Conduct Exam,” presenter, New York, June 2010

• Risk and Insurance, “Taking Stock” (insurance rate trends), March 2010

• Pennsylvania Institute of Certified Public Accountants (PICPA), “Litigation Trends in Insurance and Reinsurance,” November 2009

• Mealey's Insurance Insolvency Conference, panelist, Scottsdale, AZ, April 2008

• Business Insurance: Industry Focus, “Perspective: A solution without a problem?,” May 2007

Education

• MBA in Finance, Emory University
• BA in Economics, University of the South
• UCLA Extension – Graduate level accounting courses
• E. W. Blanch Reinsurance Training Course (offered to employees and select client employees)
• Lloyd's of London Brokers Course