The Missouri Department of Insurance regulates and monitors the health of state licensed insurance companies through the analysis of financial statements that insurance companies are required to file as well as on site examinations. Other states have there own departments of insurance which perform the same function for insurance companies in those States.
If a company is found to be in poor financial condition, the Department of Insurance can take various actions to try to save the company, and protect the policy holders. Unfortunately, just like bank failures the unthinkable really does happen and insurance companies fail. Fortunately, in the vast majority of cases in the property and casualty insurance industry, most claims are covered through the insurance guarantee fund.
The insurance guarantee fund system was created by lawmakers and the insurance industry more than 40 years ago and is designed to protect consumers to deal with association losses when insurance companies fail. The guarantee fund system in Missouri will pay the amount of coverage under the policy or $300,000.00, whichever is less. These caps are fixed by Missouri state law, and the guarantee fund plays no role in setting the coverage caps.
If you have suffered a personal injury or a loved one has suffered wrongful death and you have made a claim against the responsible party, and that party's insurance company has become insolvent you have a claim against the guarantee fund. Depending upon the residence of the insurer, your claim against the guarantee fund may be in the State of Missouri or in another state. If you have a claim against your own insurance company and they are insolvent, you have a claim against the guarantee fund as well. More information can be found at the Missouri Insurance State Guarantee Fund.
If a company is found to be in poor financial condition, the Department of Insurance can take various actions to try to save the company, and protect the policy holders. Unfortunately, just like bank failures the unthinkable really does happen and insurance companies fail. Fortunately, in the vast majority of cases in the property and casualty insurance industry, most claims are covered through the insurance guarantee fund.
The insurance guarantee fund system was created by lawmakers and the insurance industry more than 40 years ago and is designed to protect consumers to deal with association losses when insurance companies fail. The guarantee fund system in Missouri will pay the amount of coverage under the policy or $300,000.00, whichever is less. These caps are fixed by Missouri state law, and the guarantee fund plays no role in setting the coverage caps.
If you have suffered a personal injury or a loved one has suffered wrongful death and you have made a claim against the responsible party, and that party's insurance company has become insolvent you have a claim against the guarantee fund. Depending upon the residence of the insurer, your claim against the guarantee fund may be in the State of Missouri or in another state. If you have a claim against your own insurance company and they are insolvent, you have a claim against the guarantee fund as well. More information can be found at the Missouri Insurance State Guarantee Fund.
