Receivership
Louisiana law protects policyholders if their insurance companies have financial problems and can’t pay claims or debts.
Most insurance companies that do business in the state must belong to a guaranty association. Guaranty associations help pay policy claims if an insurance company fails or becomes insolvent. There are two guaranty associations in Louisiana:
Health maintenance organizations (HMOs), surplus lines insurance companies, and multiple employer welfare arrangements don’t have guaranty associations. If an insurance company isn’t a member of a guaranty association, the policy must say that it isn’t covered by a guaranty association.
Paying claims
Guaranty associations pay claims for their member companies that become insolvent. Some claims have dollar limits or other limitations, which vary by type of insurance. This means that only some of your claim might get paid.
If an insurance company fails, it may be placed in receivership. Receivership is a process in which an independent person, or receiver, takes control of the company’s assets to pay off its debts. If your claim isn’t covered by a guaranty association, or is only partially paid, you might be able to file a claim with the company’s receiver. The receiver will usually send you a notice of the claims process or post it on its website. The good news is that LIGA can pay up to $500,000 per claim and is ready to handle the influx of claims if need be.
Companies in Receivership
A list of companies in Receivership that affect Louisiana policyholders can be found here.
National insurance receivership database
The Global Receivership Information Database (GRID) is a database maintained by the National Association of Insurance Commissioners. It contains data provided by the insurance receivers of the various states regarding insurance companies in receivership. This data includes such items as company assets and liabilities, distributions made, claim liability detail and other useful company information for consumers, claimants and other interested parties.