Yeah yeah - here we go....
Insurance company overwhelmed by cost of California wildfire, goes out of business
It was facing $64 million in fire-related claims.
Insurance company overwhelmed by cost of California wildfire, goes out of business ThinkProgress
So - here is the gist - too many claims? You can liquidate. Worried about all thos people with claims? Don't Worry! Why?
Quote:
Individuals who need to file claims due to the fire shouldn***8217;t be affected though ***8212; the California Insurance Guarantee Association (CIGA) will assume any outstanding claims. The CIGA was created by state law to protect policy holders in such a situation.
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Who the **** is CIGA and where does CIGA get it's money?
http://www.caiga.org/about_ciga.html
Quote:
The CIGA Board of Governors appoints an Executive Director to oversee the CIGA management team of Directors and Managers.
The CIGA Board of Governors consists of nine Insurer Members and four Public Members as follows:
Interinsurance Exchange of the Automobile Club of Southern California - Insurer Member - Represented by Lloyd Benedetti - Chairman
Public Member appointed by the Insurance Commissioner to represent Business - Thomas Wilson - Monterey Peninsula Surgery Center, LLC. - Vice Chairman
Lawyers Mutual Insurance Company - Insurer Member - Represented by Andrew Chick - Secretary/Treasurer
Allstate Insurance Company - Insurer Member - Represented by William Vainisi
CSAA Insurance Exchange - Insurer Member - Represented by Jeffrey W. Huebner
Employers Compensation Insurance Company - Insurer Member - Represented by Stephen Festa
Liberty Mutual Insurance Company - Insurer Member - Represented by Wesley Hyatt
Mid Century Insurance Company - Insurer Member - Represented by Steven Weinstein
State Compensation Insurance Fund - Insurer Member - Represented by Peter Gustamachio
Zurich American Insurance Company - Member Insurer - Represented by Joyce Hall Mellinger
Public Member appointed by the Speaker of the Assembly - Carol Kim - Health Net
Public Member appointed by the Insurance Commissioner to represent Labor - Shane Gusman - Broad and Gusman
The members of the CIGA Board of Governors serve voluntarily and are not compensated for their services. They are reimbursed solely for expenses
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So - a couple of notes -
1) Claims and/or statutory benefits pursuant to a policy under categories (2) and (3) above are limited to no more than $500,000
2)CIGA's revenue for each of its three funds (Workers Comp, homeowner and auto, other) is derived from assessments of Member Insurers, distributions from the estates of insolvent Member Insurers, and investment income. Revenues received are allocated into the three separate funds and are used to pay the claims and costs allocated to the applicable line of business.
3)In addition, California Insurance Code section §1063.73 provides for the ability of CIGA to request the issuance of bonds to more expeditiously and effectively provide for the payment of covered claims that arise as a result of the insolvencies of insurance companies providing workers' compensation insurance. On August 18, 2004, CIGA issued $750 million in bonds.
4) This is NOT a corporation - it is an association...
Digging in further into the RATHOLE
Cal. Insurance Code, Div. 1, Part 2, Chap. 1, Art. 14.2: California Insurance Guarantee Association (2016) - California.Public.Law
Here is all the info on CIGA (baked into CA Law)
California Insurance Code Section 1063 (2016) - California.Public.Law
If you dig deep enough you will find that the payments for all this **** are derived from increased premiums to who? Californians. The people pay. Everyone else in the state pays for this ****. There is a tie in to property taxes. The ****ing "association" is empowered with special banking privileges and can issue bonds and play bank with the funds.
Oh California. You are such a Ponzi scheme.
My guess is that if I dug deep enough into the owners of the insolvent insurance company - all the executives are doing juuuust fine. Of course, finding out who they are leads you through another maze of **** since they removed all that info and you would have to start digging through public records.