and claims payment limits, a guaranty association assumes the policyholder obligations of licensed insolvent insurers in that state for residents or property
insurance in that state.
A guaranty association
obligations by assessing the member companies.
Since my company has been placed into liquidation, who will pay my
Valid and substantiated claims incurred prior to the termination of the policy will be paid, where covered, by the appropriate guaranty association, subject to policy limits and the limits of the guaranty association. The Statutory Liquidator of Reliance will forward your proof of claim to the appropriate guaranty association. Claims which are not covered by a guaranty association or portions of claims which exceed the statutory obligations of the guaranty association become claims against the estate of the company and will be paid at some time in the future to the extent funds are available.
Will my claims be paid in full by the guaranty associations?
All payments are subject to certain statutory limits contained in the various state laws creating the guaranty associations. In no case will payments exceed the applicable policy limits.
How long will it take for my claims to be paid by the guaranty association?
When a company is placed into liquidation, the guaranty associations are typically activated to pay claims as soon as the Court orders the liquidation. Claim payments usually begin within 90 days after the liquidation order is issued. However, the waiting period from the time of submission will vary based on the number of claims received, and the time claims are submitted.
If you are a policyholder or third party claimant and you currently have a claim pending with Reliance, you need to complete and return the enclosed proof of claim as soon as possible. While your claim file has already been forwarded to the guaranty association, payments may be delayed by your failure to do so on a timely basis.
I have questions about what is and is not covered by the guaranty association? Who can answer these questions for me?
You can address your questions about your property and casualty guaranty association’s responsibilities to the guaranty association in the state in which you reside. A list of the property and casualty guaranty associations is enclosed. Some states have separate organizations which handle worker’s compensation claims. These are shown by state on the property and casualty listing.