Toyota's recalls will have little impact on the ratings of auto and commercial lines insurers, according to Moody's, but a law firm said directors and officers carriers could face major exposure.
An analysis by Moody's Investors Service said for auto insurers there is the chance of limited subrogation recoveries, while commercial lines carriers face the possibility of some personal injury and product liability lawsuits as well as product recall policy claims.
However, the Blue Bell, Pa.-based law firm of Nelson Levine deLuca and Horst took note of a proposed class-action lawsuit filed last week, Stackhouse v. Toyota Motor Corp., against the manufacturer and certain of its officers and directors, alleging that Toyota's stock was exchanged at an overinflated price as the result of Toyota's failure to advise shareholders of the issues that ultimately led to the recalls.
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