0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
Did any other insurance company take over inforce policies from University Life Insurance Company of America when they were liquidated in 1987?
If a company was liquidated and there were in force policies at the time, they can still be paid by your state's Life Insurance Guaranty Association, which is a group that pays claims for insolvent companies and then assesses the costs to all other life insurers in that state. You can contact your state's insurance Department to find out how to reach the Guaranty Association.
If an insurance company is admitted does the state guarantee payment?
Virtually every state in the Union has what is called a guaranty association. There are usaually separate ones for life insurance companies and property/casualty companies. Guaranty funds provide for the payment of the claims, subject to some limitations, of insurance companies that have been licensed and admitted to do business in that state and are found to be insolvent. For more information you might go to the website of the National Association of Insurance Comissioners.
Can state life and health insurance guaranty associations run out of money?
State life and health insurance guaranty associations are designed to protect policyholders in case an insurer becomes insolvent. While it is rare for these associations to run out of funds, there is a possibility in extreme circumstances where multiple insurers fail simultaneously. However, state insurance departments actively monitor the financial health of insurers to prevent such situations.
What happens to policyholder if Life insurance company goes bankrupt?
If a life insurance company goes bankrupt or becomes insolvent, the life insurance policyholder may be protected by the life insurance guaranty fund in their state, if the life insurance company was a licensed insurer in the state. Guaranty funds usually provide from $100,000 to $500,000 of protection per policy, but many states provide up to $300,000 of protection. The National Organization of Life and Health Guaranty Associations provides information on the specific state rules as to the protection afforded to life insurance policyholders in a particular state. You can visit their site at www.nolhga.com and look up State Guaranty Laws to determine the coverage that may apply to you, and further research this topic. Before declaring bankruptcy or insolvency before the competent Court, they are to meet up the liabilities of their sundry creditors and policy holders whose maturity payments have become due, to the full satisfaction of the Hon'ble Court of the country.
Will life insurance policies pay benefits in this economy?
Yes, your life insurance policies should pay benefits in this economy. Life insurance companies are state regulated. In each state their is a State Guaranty Fund that provides security for up to $300,000 per life insuranc epolicy, usually. The State Guaranty Funds differ by state. However, some life insurance companies do fail, or go into default and are taken over by the State Department of insurance. It's important to review the financial stability ratings of your insurer on a regular basis to determine the financial strength of the company, and their ability to pay claims. Usually, an AM Best rating of "A" Excellent, or higher, is a financially safe and secure carrier. However, AIG was rated "A++" I believe, and they had a financial crisis. But, they are backed by state guaranty funds.
Is cash value on life insurance insured?
The cash value that develops in a whole life insurance policy is not "insured" in the sense that it is not guaranteed to accumulate at a rate greater than the minimum rate set forth in the contract. However, insurance policies that are issued by authorized (licensed) insurers may be considered to be "insured" in another sense. If the insurer encounters financial problems that require placement of the insurer into a rehabilitation or liquidation process by a state regulator, the involvement of the state insurance guaranty association may be triggered to ensure that claims are paid. The guaranty associations are creatures of state law, such that the issue of cash value would be determined according to the governing statutory law.
Which state has the most afordable car insurance?
According to the National Association of Insurance Commissioners, the cheapest state for auto insurance is North Dakota.
How does someone get open enrollment insurance?
Check with the Dept of Insurance in your state or the National Association of Insurance Commissioners website (naic.org/state_web_map.htm) for links to the state officials you are looking for
Where is the best state to purchase All State Insurance in?
Each state has different minimum insurance requirements, causing insurance premiums to differ from state to state. According to the National Association of Insurance Commissioners, Iowa is the least expensive state for auto insurance, followed by North Dakota, and Idaho.
What companies in Chicago offer condo association insurance policies?
State Farm, Progressive and Geico are some well known companies that offer condo association insurance policies. There are local and lesser known companies such as Melendez Insurance that offer condo association insurance policies also.
Who regulates insurance carriers?
Each individual state's department of insurance led by the corresponding insurance commissioner regulates the insurance carriers domiciled in that state. The NAIC (National Association of Insurance Commissioners) also assist in the regulation of insurance carriers.
How do you find a health insurance for an alien senior citizen?
Check with the Dept of Insurance in your state or the National Association of Insurance Commissioners website (naic.org/state_web_map.htm) for links to the state officials where you live
