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:
9120 Burnet Road
Austin, TX 78758
Phone: (512) 345-9335
Toll Free: (800) 856-0298
Fax: (512) 345-9341
The lawyers at Wham & Rogers can help with auto collision claims. Call us at 832- 592-1108, or you can fill out a client inquiry form on our contact page: https://www.whamandrogers.com/contact/
The information in this blog is not, nor is it intended to be legal advice. You should contact an attorney for advice regarding your individual situation. Contacting us does not create an attorney client relationship. Please do not send any confidential information to us until such time as an attorney client relationship has been established.