When does CIGA become responsible for handling the claim of an insolvent insurance company?
CIGA is triggered when a Member Insurer admitted to transact business in California is found by a court of competent jurisdiction to be insolvent and ordered into liquidation.
I have legal expenses incurred prior to the insolvency, what should I do?
Legal expenses incurred prior to the insolvency date should be directed to the liquidator of the insolvent Member Insurer. CIGA can only consider legal expenses if incurred after the insolvency.
If I receive notice of a new claim or I am served with a lawsuit, what should I do?
If you have insurance coverage for the new claim or lawsuit with an insolvent insurer, you should immediately contact CIGA and send a copy of the claim and/or lawsuit to our office. In addition, most liquidators require that they also be notified of any new claim or lawsuit. Do I have to file my claim again with CIGA if it is already filed with my insurance company?
If your claim appears in the insurer's records, CIGA will have notice of your claim and there is no need to file it again.