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Yearly Archives: 2020

What if My Auto Insurance Carrier Goes Bankrupt

By Nov 2, 2020 Posted in Automobile Issues

Texas Auto Insurer ACCC Placed Into Receivership On October 21, a Texas Judge signed an order placing Texas Auto Insurer ACCC into receivership, stating that ACCC ‘is in a condition such that further transaction of its business would be hazardous financially to its policyholders, creditors, or the public.” What happens if your auto insurance carrier goes out of business? What an insurer is declared insolvent, the state Guaranty Fund Transfer’s the insurer’s policies can be transferred to another insurer, or the Guaranty Fund can assume the insolvent insurer’s obligations—up to the limits of the policy, or $300,000.00–which ever is less. Should I continue making payments? If you have a payment due right away, you should either make the payment or change policies right away. The most important factor is to make certain there is no gap in your coverage, so consult your insurance agent for advice. Should I cancel my policy? Of course, you should consult your insurance agent, but it is generally a good idea to cancel coverage right away if your insurance carrier becomes insolvent. The Texas Guaranty Fund does have provisions to seek reimbursement of unearned premiums paid to the carrier—insolvent carrier—up to $25,000.00. What is the name of the Texas Guaranty Fund agency? If you are insured by ACCC, you should contact the Texas Property and Casualty Insurance Guaranty Association. They are located in Austin, Texas. Here is a link to their website: https://www.tpciga.org Their contact information is: TPCIGA 9120 Burnet Road Austin, TX 78758 Phone: […]

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