What Happens If Your Insurer Goes Bankrupt?
So, you’re wondering where your money is and why it’s taking so long to get. Well, you’re not alone. An estimated 25,000 Louisiana residents are still seeking relief from the state’s industry bailout program after Hurricane Ida.
The Louisiana Insurance Guaranty Association
Insurance companies go out of business every year, and they sometimes leave unpaid claims. These claims become the responsibility of the Louisiana Insurance Guaranty Association (LIGA). This organization is essentially a safety net that was created for the rare instances when an insurer goes bankrupt. But the size and frequency of the failures in the last year, spurred by Hurricane Ida, have stretched LIGA to its limits. For more information on the situation, read this article.
There is a lot that goes into these claims; it’s not as simple as writing a check. In some cases, there may be disputes over damages, so closing them out can be delayed for several reasons. However, LIGA has already spent more than $390 million on claims and premium refunds to policyholders, so progress is definitely being made — it’s a slow-moving process. You just have to wait for your turn when a LIGA adjuster gets appointed to your case.
Don’t Give Up!
So don’t give up on your insurance claim if your carrier has gone bankrupt. There is still hope! Dealing with LIGA is complicated and time-consuming, but the attorneys at MMA Law Firm, have been successful in getting mediations and resolutions for many policyholders whose insurer has gone out of business.
Fortunately, most insurance cases never reach the trial stage, but we will file a lawsuit if necessary. Our team will work tirelessly with the property owner’s best interests in mind.
If you still have questions, please don’t hesitate to reach out to our team.
This blog published by MMA Law Firm is available for informational purposes only and is not intended to be legal advice on any subject matter. The content available on this website may not constitute the most up-to-date legal or other information.