Closing of insurance company

by joven222 » Sat Jan 13, 2007 08:19 pm

Hello!!

I just drop by to ask a question.

Is there an instance that a insurance company where you have bought your life insurance policy has been closed for some reasons? When this happens, what happens to the policy holders? Where can they have a claim of their insurance proceeds if there are? Would they be affected by the closing of such company?

In our country, i know of some insurance companies that closes for some reason which i don't know, but there are governing policies for the closure. I just want to know if the procedure is the same in other countries. :wink:

Thanks a lot!!

Total Comments: 7

Posted: Mon Jan 15, 2007 04:52 am Post Subject:

This all depends on the type of company you are with, and what the situation is. This is why you should always research the company that you are going with and make sure that they are highly rated so that you can feel comfortable with the company you are with so that these instances do not happen.

Posted: Mon Jan 15, 2007 09:36 am Post Subject:

Hi guys,
I certainly agree with nique1221 on this.

This is why you should always research the company that you are going with and make sure that they are highly rated so that you can feel comfortable with the company you are with so that these instances do not happen.


You can always refer to the Insurance Company's Financial Strength Comparison Page to check out a company's financial strength. The Life Insurers Financial Strength Comparison page is here.
One can also put forth any queries over there. Hope that helps.:D
Thanks,
Fatman

Posted: Mon Jan 15, 2007 02:53 pm Post Subject:

hello nique1221 and fatman,

thanks for your reply and thanks for the sources. This community can rely help with this kinds of information being presented.

can i have a follow up question? example: what if i haven't research for that company in the first place. some friend refers that company to me. so i decided to get without hesitation. and then, after lets say, 3 years the insurance company closes. can i have a claim on my benefits or on the money that i have paid for my insurance? is there some laws in your country that govern this kind of situation?

thanks a lot in advance!!

Posted: Tue Jan 16, 2007 12:16 am Post Subject:

Again, it really depends on the company, they may have sold it to another company that was willing to take on the risk, I really have no idea without knowing what company it is and their situation. What I would do if I were you, is I would call the company directly and ask them the situation and how and if you can submit a claim and what the circumstances are. If you cannot contact anyone from that company you may want to contact the insurance department in your state/country to see what the repercusions are and where you can get some information, and hopefully you will not get sorry for the language screwed...Good luck with this and please let us know how you make out.

Posted: Tue Jan 16, 2007 10:37 pm Post Subject:

Hi nique1221,

Thanks for your reply. With regards to the closing of an insurance company, i have ask one of the sales manager in our city and she told me that their is no risk about those closing company. You are right.

it really depends on the company, they may have sold it to another company that was willing to take on the risk

All insurance companies are bound to stick to the insurance law. When this happens, when a company closes what ever the reason may be, they can't completely close their company until there is one insurance company that would be willing buy the closing company out. They would assume the risk of paying the insurance proceeds but they are also in charge in receiving premium payments from the policy holders.

I hope this can provide even a small information to the guests and members.

Thanks to nique1221!!

Hope that we would have a good relationship in this community...

Thanks a lot and more power!!

Posted: Thu Dec 04, 2008 05:58 am Post Subject: closing companies

what are some reasons why some companies needs to close or stop their operation?

Posted: Thu Dec 04, 2008 10:48 am Post Subject:

broke...bad investments...greedy blood sucking ceo's and officers...bad losses or natural disasters.

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