Premier Auto Insurance Questions and Answers
Q. What happens when a company becomes insolvent and is liquidated?
A. Liquidation is similar to bankruptcy. When a company is liquidated, the Insurance Department's Office of Liquidations, Rehabilitations and Special Funds gathers the company's assets and determines what liabilities, such as bills and claim payments, it has. The Statutory Liquidator then develops a plan to distribute the company's assets according to established law and submits the plan to the Court for approval. The liquidation process could take several years.
Q. You say Premier was ordered liquidated. Does this mean my policy is worthless?
A. No. Although Premier has been placed into liquidation, as a Pennsylvania resident, the Pennsylvania Property & Casualty Insurance Guaranty Association is obligated to provide coverage contained in insurance policies issued by Premier subject to certain limitations. If you are not a resident of Pennsylvania, you should contact the Statutory Liquidator.
Q. Will my policy be canceled because of the liquidation?
A. Yes. By order of the Commonwealth Court of Pennsylvania, insurance coverage with Premier will terminate 30 days from the date of liquidation, on the normal expiration of the policy period for which premium was paid or upon replacement of that policy, whichever is earliest. In no case will coverage be in effect after September 30, 2000.
Q. What is a guaranty association?
A. A guaranty association is an association of all insurers licensed to write property and casualty insurance in a state. Subject to statutory limits, a guaranty association assumes the policyholder obligations of licensed insolvent insurers in that state for residents and/or property of that state. The association obtains funds to meet its obligations by assessing the member companies.
Q. Since my company has been placed into liquidation, will my claims be paid?
A. Yes. All valid claims incurred prior to the termination of your policy or termination of your coverage will be paid subject to policy limits and PPCIGA's limits. These claims should be submitted to PPCIGA (address below).
Q. Will my claims be paid in full?
A. All valid policyholder claims are subject to certain statutory limits contained in the law creating the guaranty association. In no case will benefits exceed the applicable policy limits.
Q. How long will it take PPCIGA to pay my claims?
A. When a company is placed into liquidation, PPCIGA is typically activated to pay claims as soon as the Court orders the liquidation. Claim payments usually begin within 60 to 90 days after the Court order is issued. However, the waiting period may vary based on the number of claims received, and the time claims are submitted.
If you are a policyholder and you currently have a claim pending with Premier, you do not need to do anything else. Your claim will be forwarded to PPCIGA for processing.
Q. I have questions about what is and is not covered by the guaranty association? Who can answer these questions for me?
A. You can address your questions about the guaranty association's responsibilities to PPCIGA at:
Pennsylvania Property & Casualty Insurance Guaranty Association
PPICGA at 1620 Suburban Station Bldg.
1617 J.F.K. Boulevard
Philadelphia, PA 19103
Telephone (215) 568-1007
Q. I believe I have a claim against Premier but I am not a policyholder. How do I make a claim?
A. Claims filed against Premier by general creditors, stockholders, trade creditors, governmental agencies, reinsurers, agents, employees and other persons interested in the affairs of Premier are handled by the Statutory Liquidator. To file a claim for monies owed to you by Premier, you must file a proof of claim form with the Statutory Liquidator no later than 5:00 EST on August 31, 2001. If you fail to file a proof of claim form by this date, your claim may not be considered to be timely filed. Failure to file a timely claim may result in denial of your claim or consideration of your claim at a lower priority level.
The Statutory Liquidator's staff is ready to respond to your concerns. If you require assistance, forms or information, please do not hesitate to contact us at (717) 787-7823 or via e-mail.