Multi-State insurance company insolvencies for the most part have been few and far between in the property & casualty insurance world for the past several years. However, on March 11, 2021 Bedivere Insurance Company was declared insolvent and ordered liquidated by a court of competent jurisdiction in Pennsylvania. The company (including the companies that merged into it prior to liquidation) was licensed in all fifty states, and presents us with an opportunity to remind those in the insurance & legal community of some basic provisions of state guaranty funds.
The various Guaranty Funds are created by statute and have statutory duties and obligations should a member insurance company be declared insolvent and ordered liquidated by a court, as was the case of Bedivere Insurance Company recently in Pennsylvania. The liquidation order with a finding of insolvency triggers the limited protection offered by the applicable Guaranty Fund.
Copyright © 2022 ALM Media Properties, LLC. All Rights Reserved.