Q. Has any B or above rated insurance company failed in the past 7 years? If it happens, what will happen to my policy with it?
A. It's rare for insurance company failures, but it does happen.
According to Weiss and their rating scale; only 3 B rated companies have failed over the past 7 years.
What Happens If A Failure Happened
In the event a insurance failure happens, typically the State Guarantee Association (SGA) will step in.
SGA is not insurance. It is an assurance that the insurance companies operate in a state will all have to contribute to. In the event of a company goes under, SGA will first put limitations on access to the insurer's funds to prevent a run on the company, then it will try to find a suitable company to buy up blocks of business from the failing company. Its last resort is to make a calculation on the covered amount for each policy (varies by state), and pay out to the policy holder.
A. It's rare for insurance company failures, but it does happen.
According to Weiss and their rating scale; only 3 B rated companies have failed over the past 7 years.
- Shenandoah Life
- American Community Mutual
- Triad Guaranty Assurance Co.
What Happens If A Failure Happened
In the event a insurance failure happens, typically the State Guarantee Association (SGA) will step in.
SGA is not insurance. It is an assurance that the insurance companies operate in a state will all have to contribute to. In the event of a company goes under, SGA will first put limitations on access to the insurer's funds to prevent a run on the company, then it will try to find a suitable company to buy up blocks of business from the failing company. Its last resort is to make a calculation on the covered amount for each policy (varies by state), and pay out to the policy holder.
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