FAQ's
What Happens When a Company is Declared Insolvent and is Placed in Liquidation
Liquidation is a process similar to bankruptcy. When a court of competent jurisdiction declares a company insolvent, it appoints a Liquidator to take control of the company’s assets and assess its liabilities, such as unpaid bills and insurance claims. The Liquidator creates a distribution plan in accordance with applicable laws and submits it to the court for approval. This process can take several years to complete. For more information, visit the Delaware Insurance Department website or the insurance department website of the state where the company is being liquidated.
What Does Delaware Insurance Guaranty Association Cover?
When it comes to insurance coverage, it's essential to know what options are available to you in the unfortunate event that your insurance company becomes insolvent. One resource that Delaware residents can turn to for assistance is the Delaware Insurance Guaranty Association (DIGA).The Delaware Insurance Guaranty Association is a valuable resource for policyholders in Delaware when their insurance company goes into liquidation. DIGA is committed to stepping in and paying claims up to specified limits to ensure that residents are not left without coverage. This safety net can provide much-needed relief and peace of mind during a challenging time. If you're a Delaware resident and find yourself in a situation where your insurance company has become insolvent, it's important to understand what DIGA covers. The association typically covers various types of insurance, including but not limited to auto insurance, homeowners insurance, and liability insurance. However, it's crucial to note that coverage limits do apply, so it's essential to familiarize yourself with the specific details outlined by DIGA. By visiting the association's website, you can find valuable information such as a list of insolvent insurance companies, links to the Delaware insurance code chapter 42, and contact information for the office. In conclusion, the Delaware Insurance Guaranty Association serves as a lifeline for policyholders in Delaware when their insurance company faces insolvency. By understanding what DIGA covers and accessing the resources provided, residents can take proactive steps to protect their interests and ensure they have the coverage they need.