What Happens To Existing Customers Of Insurance Companies That Close?

[MrInsurance12345]

Just curious, for customers who had a policy with Prosperity or Great Western or RNA or whatever other companies that closed up shop- what happens to the existing customers?

Does the company refund them? Do they still get coverage and the company simply stops accepting new customers? Or do they lose coverage? Thanks!

 

[WinoBlues]

Just curious, for customers who had a policy with Prosperity or Great Western or RNA or whatever other companies that closed up shop- what happens to the existing customers?

Does the company refund them? Do they still get coverage and the company simply stops accepting new customers? Or do they lose coverage? Thanks!

Just a note - a Fraternal(RNA) or group plan may be different than a Life Insurance policy. Also probably state specific.

 

[jdeasy]

Nothing happens to current customers.

Just no new business.

 

[WinoBlues]

Just curious, for customers who had a policy with Prosperity or Great Western or RNA or whatever other companies that closed up shop- what happens to the existing customers?

Does the company refund them? Do they still get coverage and the company simply stops accepting new customers? Or do they lose coverage? Thanks!

Just stops doing new business or becomes insolvent?

 

[MrInsurance12345]

Just stops doing new business or becomes insolvent?

Have there been any companies that went insolvent?

 

[MrInsurance12345]

Nothing happens to current customers.

Just no new business.

Have there been any companies that went insolvent? Or kicked out existing customers? Thanks!

 

[jdeasy]

Have there been any companies that went insolvent? Or kicked out existing customers? Thanks!

No. Doesn’t happen. Actually can’t happen.

There may be a fight over it?

See the Colorado Bankers thread.

 

[LostDollar]

Just curious, for customers who had a policy with Prosperity or Great Western or RNA or whatever other companies that closed up shop- what happens to the existing customers?

Does the company refund them? Do they still get coverage and the company simply stops accepting new customers? Or do they lose coverage? Thanks!

I have a life insurance policy issued 80 years ago. Company issuing it is long gone but my policy has wended its way through an unknown number of buyouts to a company still in business that can pay off the death claim.

(It's on legal size parchment paper instead of the "modern" 8 1/2 x 11 printer paper in a plastic folder.)

 

[Tahoe Ray]

It's on legal size parchment paper

Like a scroll?

 

[BobHarris]

Like a scroll?

maybe a stone tablet