Paul Sanchez
Access Insurance Company was ordered into liquidation on March 13, 2018, after being deemed insolvent and unable to pay off its debts. The company's policies were terminated by April 12, 2018, leaving customers scrambling to find replacement coverage with new insurance providers. The liquidation process was overseen by a court-appointed liquidator, who was responsible for forwarding open claims to the appropriate state guarantee fund, such as the California Insurance Guarantee Association (CIGA). Consumers with claims against Access Insurance Company were instructed to reach out to CIGA or the liquidator to ensure their claims were handled according to their state's provisions. This development caused concern for policyholders, who had to navigate the complex process of finding new insurance coverage and resolving their claims during the liquidation.
| Characteristics | Values |
|---|---|
| Reason for going out of business | Unable to pay off its debts |
| Date liquidation ordered | March 13, 2018 |
| Date policies terminated | April 12, 2018 |
| Customers advised to | Find replacement coverage with a new insurance company |
| Claims handled by | The policyholder's state insurance guaranty association |
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What You'll Learn
Access Insurance Company's liquidation date
The liquidation date of the Access Insurance Company was March 13, 2018. The company was found insolvent and ordered into liquidation by the Texas Department of Insurance. The liquidation order stated that all policies and insurance contracts issued by Access Insurance that were in effect on March 13 would continue until either:
- 30 days after the liquidation order
- The date of expiration of the policy coverage
- The date the insured replaced or terminated the policy
The last day to file a proof of claim (POC) with the liquidator/receiver was September 13, 2019. The California Insurance Guarantee Association (CIGA) is handling the claims of Access Insurance Company and will provide notice to all policyholders of the deadline for filing claims with CIGA. Consumers whose coverage was terminated mid-policy are also entitled to file a claim with CIGA for a refund of the unearned portion of the premium previously paid.
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California Insurance Guarantee Association (CIGA)
The California Insurance Guarantee Association (CIGA) is a non-profit, unincorporated, statutorily-created association that pays certain covered claims of insolvent insurance companies' policyholders and claimants. CIGA is a limited fund set up by California law to pay for some, but not all, types of claims.
CIGA is California's guaranty fund for liability, auto, and workers' compensation claims. It is important to note that CIGA may not be able to assist with outstanding issues unrelated to a claim or policy, such as subpoenaing records or requesting loss runs. In such cases, individuals may need to reach out to the court-appointed liquidator/receiver, who is the custodian of records for the insurance company in liquidation.
In the case of Access Insurance Company, which was ordered into liquidation on March 13, 2018, CIGA played a crucial role in handling open claims. The court-appointed liquidator transferred open claims to CIGA, and consumers with new claims were instructed to submit them directly to Access Insurance Company for forwarding to CIGA. CIGA also provided notice to all Access policyholders regarding the deadline for filing claims. Additionally, consumers whose coverage was terminated mid-policy were entitled to file a claim with CIGA for a refund of the unearned portion of the premium they had paid.
The California Life and Health Insurance Guarantee Association, a separate entity mentioned on the CIGA website, provides limited protection for life, health, and annuity benefits in the event of insurance company insolvency. This protection is available to California resident policyholders or beneficiaries, assignees, or payees of such policyholders, regardless of their residency. The association works to continue coverage, either directly or by transferring policies to another insurer, as long as premiums are paid or cash value exists.
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Policy cancellations
On March 13, 2018, Access Insurance Company was found insolvent and ordered into liquidation. The Texas Department of Insurance issued a liquidation order that stated all policies and insurance contracts issued by Access Insurance that were in effect on March 13 would continue until either:
- 30 days after the liquidation order
- The date of expiration of the policy coverage
- The date the insured has replaced or terminated the policy
As a result, Access Insurance consumers were urged to find new coverage before their policies were canceled on April 12, 2018.
Consumers with claims filed prior to March 13, 2018, will have their claims transferred by the liquidator to the California Insurance Guarantee Association (CIGA) for payment. CIGA will also handle new claims submitted directly to Access Insurance. Consumers whose coverage was terminated mid-policy are entitled to file a claim with CIGA for a refund of the unearned portion of the premium they paid.
To reach out to CIGA, consumers can call 1-800-927-4357 or visit www.insurance.ca.gov.
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Outstanding issues
On March 13, 2018, Access Insurance Company was found insolvent and ordered into liquidation. The Texas Department of Insurance issued a liquidation order, stating that all policies and insurance contracts issued by Access Insurance would remain in force until either 30 days after the liquidation order, the date of expiration of the policy coverage, or the date the insured replaced or terminated the policy. As a result, Access Insurance consumers were urged to find new coverage before their policies were canceled effective April 12, 2018.
- Subpoenaing records: If policyholders need to subpoena records from Access Insurance, they may need to reach out to the court-appointed liquidator/receiver, who is the custodian of records for the company.
- Request for loss runs: For requests for loss runs or other matters unrelated to a claim or policy, the California Insurance Guarantee Association (CIGA) may not be able to assist. Policyholders may need to contact the liquidator/receiver directly.
- Open claims: Any open claims as of the liquidation date were to be forwarded by the court-appointed liquidator to the appropriate State Guarantee Fund, such as CIGA for California residents. Policyholders with open claims should ensure that their claims have been properly transferred and continue to follow up with CIGA or their respective state's guarantee association for updates.
- Filing new claims: Policyholders with new claims after the liquidation date can submit them directly to Access Insurance, and they will be transferred to the appropriate state guarantee association. It is important to be aware of any deadlines for filing new claims, as there may be time limitations.
- Refund of unearned premium: If a policy was canceled before its maturity or expiration date due to the liquidation, policyholders may be eligible for a refund of the unearned portion of the premium. They should reach out to the appropriate state guarantee association and provide their policy number and contact information.
- Policy cancellations: All Access Insurance policies were terminated by April 12, 2018. Policyholders were encouraged to find replacement coverage with a new insurance company to ensure continuous protection.
It is important for affected policyholders to stay informed and take the necessary steps to protect their interests and ensure a smooth transition during this liquidation process.
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$11.09 $18.95
Insolvency
Access Insurance Company was found to be insolvent and was ordered into liquidation on March 13, 2018. The Texas Department of Insurance issued the liquidation order, stating that all policies and insurance contracts issued by Access Insurance would remain in force until either 30 days after the liquidation order, the date of expiration of the policy coverage, or the date the insured replaces or terminates the policy. As a result, Access Insurance consumers were urged to find new coverage before their policies were canceled effective April 12, 2018.
The court-appointed liquidator was responsible for forwarding open claims to the appropriate State Guarantee Fund. In California, the California Insurance Guarantee Association (CIGA) handled the claims. CIGA is a not-for-profit, unincorporated association that pays certain covered claims of insolvent insurance companies' policyholders and claimants. It is important to note that CIGA has limitations and may not cover all types of claims.
For persons with outstanding issues unrelated to a claim or policy, such as subpoenaing records or requesting loss runs, CIGA may not be able to provide assistance. In such cases, individuals may need to reach out to the court-appointed liquidator, who is the custodian of records for Access Insurance Company. The deadline for filing a Proof of Claim (POC) with the liquidator was September 13, 2019.
The liquidation of Access Insurance Company caused inconvenience and uncertainty for its customers, who had to find replacement coverage within a short timeframe. The impact of the company's insolvency on its customers and stakeholders is a significant concern, and the process of resolving claims and providing assistance to those affected is crucial to mitigate any potential negative consequences.
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Frequently asked questions
Yes, Access Insurance Company was ordered into liquidation on 13 March 2018, after the company was unable to pay off its debts.
All Access Insurance Company policies were terminated by 12 April 2018. Consumers were urged to shop for replacement coverage before this date.
All claims will be handled by the policyholder's state insurance guaranty association, such as the California Insurance Guarantee Association (CIGA). If your claim was open at the time of liquidation, the court-appointed liquidator will forward it to CIGA.
You may be eligible for a refund of the unearned premium. Contact CIGA and provide your policy number and the best way for them to contact you.
