Overview
In certain circumstances, like when an insurance company is in financial trouble and there is the possibility that claims will not be paid because the assets may not be sufficient to meet policyholder obligations, the Insurance Department will step in to rehabilitate the company and return it to financial health, or in the direst of circumstances, liquidate an insolvent company for the benefit of policyholder, creditors and taxpayers of Pennsylvania.
Contact Us
Office of Liquidations, Rehabilitations and Special Funds
Capital Associates Building
901 North 7th Street. 3rd Fl.
Harrisburg, PA 17102
Phone: (717) 787-6009
Fax: (717)-772-4543
Send general questions to: ra-in-claims@pa.gov
Resources
Glossary of Common Terms
Tangible or intangible item with exchange or commercial value owned by the insurance company as listed on its balance sheet.
A request made by the insured for insurer payment due to a loss incurred and covered under the policy agreement.
The first or third party that asserts a right of recovery.
An association established to pay claims of insolvent insurance companies. These funds are maintained by assessments collected from all insurers licensed in the state.
When an individual or organization can no longer meet its financial obligations with its policyholders or creditors as debts become due.
The person or organization covered by an insurance policy.
The insurance company.
Taking over of an insurance company’s assets by the State Insurance Commissioner when examination of the annual report reveals that the company is in substantial financial difficulty. The State Insurance Commissioner will then operate the company in what is deemed to be the best interest of the policyholders, insureds, and creditors. If the State Insurance Commissioner believes it is possible to save the company, rehabilitation may be ordered; if salvage is deemed impossible, liquidation may be necessary.
A written and documented claim against an insurance company that has been liquidated.