Casualty Reciprocal Exchange Auto Insurance Review

Drivers looking for a car insurance policy with Casualty Reciprocal Exchange Auto Insurance will be advised to seek their auto insurance coverage elsewhere. The reason is that Casualty Reciprocal Exchange Auto Insurance was liquidated in 2004 and can no longer sell new auto insurance policies. Compare auto insurance with this extremely useful tool!

What Liquidation Means

When an auto insurance company has been determined to be a candidate for liquidation, its liabilities exceed its assets. Simply put, it owes more money than it currently has the ability to pay. After its liquidation, Casualty Reciprocal Exchange Auto Insurance ceased to operate as an insurance company.

Paying claims in the case of liquidation can take several years, and Casualty Reciprocal Exchange Auto Insurance has been spending these years settling their claims. Some of those claims are for people who were policy holders that filed claims for their auto insurance coverage.

How to Receive Payment from a Liquidated Insurance Company

In order to receive payment from Casualty Reciprocal Exchange Auto Insurance, those who have an open claim will have needed to receive two things in the mail:

1. The Notice of Liquidation
2. The Proof of Claim

The Notice of Liquidation

Within each state is what is called the Insurance Guaranty Associations; it also may be called the Guaranty Fund. The Guaranty Fund is the entity that has been charged with disbursing the money owed on some of the claims from companies that have been liquidated, like Casualty Reciprocal Exchange Auto Insurance. The letter policy holders received gave them information about which Guaranty Fund would be handling their claims.

The Proof of Claim

For those who did not have a Guaranty Fund or an Insurance Guaranty Association in their state to handle their claim, the Liquidator was charged with liquidated all of Casualty Reciprocal Exchange Auto Insurance’s claims. It was for this purpose that they needed the Proof of Claim.

The Proof of Claim gave the Guaranty Funds the information they needed about Casualty Reciprocal Exchange Auto Insurance claims. The information on this document helped them determine whether or not the claimant was entitled to payment.

How Much Could Claimants Receive from Casualty Reciprocal Exchange?

What determined how much policy holders would receive for their claims were several things. They were:

1. The terms of the policy holders’ policies
2. The limits that were set for these policies
3. The amount of money contained in the Guaranty Funds
4. The estate assets

 

Policy holders who filed their Casualty Reciprocal Exchange Auto Insurance claims before their policies expired had a very real possibility of having their claims paid.

How Quickly Are Claims for a Liquidated Company Paid?

The claims process for a company that is being liquidated is meant to be completed as quickly as it can be. Policy holders with an open claim were advised to begin expediting this process as soon as they received their paperwork in the mail so that the Liquidator or the Guaranty Funds could pay their claims.

The other people who may have had claims against Casualty Reciprocal Exchange Auto Insurance were third parties who filed a claim for the liability coverage. These people were also charged with filing a claim with the Proof of Claims. With this document, the Guaranty Funds were able to consider the claim.

Avoiding Purchasing Auto Insurance from a Company that May Be Liquidated

The process described above can be avoided if drivers take a little time to find out what possibility the company has of becoming insolvent. What these drivers will want to know is whether or not an insurance company has sufficient assets to pay all auto insurance claims that are filed by all policy holders or third parties.

If an insurance company has the potential to have difficulties, it will have low credit ratings from credit ratings agencies such as A.M. Best and Standard & Poor’s. A.M. Best is the agency that mostly rates insurance companies but drivers may also find a rating from Standard & Poor’s useful.

Receive Several Auto Insurance Quotes

People will not be able to receive a quote from Casualty Reciprocal Exchange Auto Insurance with this website’s comparison feature, but they will receive several auto insurance quotes from many other auto insurance companies currently in business. Then, they can consult A.M. Best for their credit ratings before they decide to purchase an insurance policy from the company.