How is liquidation different from rehabilitation?
When an insurance company enters a period of financial difficulty and is unable to meet its obligations, the insurance commissioner in the company’s home state initiates a process dictated by the laws of the states whereby every attempt is first made to help the company regain its financial footing. This period is known as rehabilitation. If it is determined that the company cannot be rehabilitated, the company is declared insolvent, and the laws of the state require the commissioner to ask the state court to order the liquidation of the company.
Related Questions
- Are the therapy services at Braintree Rehabilitation Hospital different than other types of rehabilitation facilities like SNF or LTAC hospitals?
- Are people on different rehabilitation programs (VA rehab or Arkansas rehab) eligible for the aviation program?
- How is NSNBC different from other rehabilitation facilities or physical therapy clinics?
