What happens when your insurance company is sold?

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PostPosted: Mon Dec 17, 2007 9:28 am   Post subject: What happens when your insurance company is sold?  

I was reading the news that Aon Corporation is selling its Combined Insurance Company of America (CICA) business to ACE Limited for a cool $2.4 billion and its Sterling Life Insurance Company (Sterling) business to Munich Re Group for $352 million.



I'm curious about what happens to the policies that have been taken out through the companies that are now being sold. Do they automatically transfer to and are the terms honored by the new owners or do they have to be renewed/ renegotiated with the acquiring company?



I suppose another option would be they're canceled and you need to look elsewhere. Or is it none of the above? I bet it's something I didn't think of... Laughing

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PostPosted: Mon Dec 17, 2007 10:48 am   Post subject:   

I would think (pretty sure) that all policy condition must remain the exact same...they ''could'' add a benefit, but not take any away.......

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PostPosted: Tue Dec 18, 2007 6:14 am   Post subject:   

Quote:
I would think (pretty sure) that all policy condition must remain the exact same...they ''could'' add a benefit, but not take any away.......




Thank you, Lori. Smile Let's hope the staff get the same kind of deal too regarding their contracts. Too many times in these kinds of situations redundancy rears its ugly head. Confused
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PostPosted: Tue Dec 18, 2007 10:09 am   Post subject:   

I guess the current policy holders of the sold out company will continue enjoying the benefits on their policies. Lori is right, they can't curb the benefits on the policies the consumers are presently enjoying.


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PostPosted: Tue Dec 18, 2007 10:24 am   Post subject:   

Right, it becomes a big cause of concern when your insurer sells out his business to other. It puts the fate of your policies at uncertainty. You don't know whom to communicate with, which door to knock if you face a problem. It also takes some time to get acquainted with the terms and conditions of the new company. I think, there should be a proper way to inform the consumers before drawing the final deed of business.


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PostPosted: Sat Dec 22, 2007 2:38 am   Post subject:   

I would think that lori is right, they bought the contracts exactly how you signed them with the other company, gosh these companies sure are changing hands lately, insurance companies, mortgage companies, what is going on in these industries, is this a common trend?

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PostPosted: Tue Jan 01, 2008 2:32 pm   Post subject:   

You will recieve a letter telling you who your new carrier is.

You will be informed of any changes in where to send your premiums.

They will conform to the policy contract you signed.

Staple the letter to your policy.

--Thank You--



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PostPosted: Thu Jan 03, 2008 3:14 am   Post subject:   

Everything should remain the same as long as you stay under the current contract, once you make any changes you may see them implement their own policy then. But as it remains the same you should not see any difference unless they plan to enhance it, they can enhance but not take away.

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