California's insurance commissioner, Dave Jones, is urging consumers with Access Insurance Company policies to shop for replacement coverage immediately before their policies are canceled effective April 12. The policy cancellations are the result of a liquidation order issued against Access Insurance Company by the Texas Department of Insurance on March 13.
The Texas liquidation order provides in part that all policies and insurance contracts issued by Access in effect on March 13 shall continue in force only until either the 30th day after entry of the liquidation order; the date of expiration of the policy coverage; or the date the insured has replaced the policy or otherwise terminated the policy, whichever occurs first.
“As insurance commissioner, my first priority is protecting consumers – that includes helping affected policyholders navigate the liquidation process and offering assistance to address their questions,” said Commissioner Jones. “We have been hearing from consumers who are confused about the cancellation notice they received and we want to make sure policyholders understand the steps they need to take.”
Any claim filed by consumers with Access Insurance Company prior to March 13 will be transferred by the liquidator to the California Insurance Guarantee Association (“CIGA”) for payment so it does not need to be refiled, Commissioner Jones added. Consumers with new claims can submit their claims directly to Access Insurance Company and those claims will be transferred to CIGA. CIGA will provide notice to all Access policyholders of the deadline for filing claims with CIGA. Consumers whose coverage will be terminated mid-policy also are entitled to file a claim with CIGA for the return of the unearned portion of premium previously paid.
In March, Commissioner Jones issued a cease and desist order against Access that required the company to immediately stop writing any new or renewal insurance business of any kind in California.
Steven A. Meyerowitz
Steven A. Meyerowitz, a Harvard Law School graduate, is the founder and president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. He may be contacted at [email protected].