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What happens when an insurance company becomes insolvent and is liquidated?

April 26, 2017COMPANY happens insolvent Insurance liquidated

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What happens when an insurance company becomes insolvent and is liquidated?

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The Companies were placed into Liquidation because they were insolvent (liabilities in excess of assets). Since the Companies were domiciled in Missouri, the Circuit Court of Cole County (county where the Missouri capitol is located) appointed the Director of the Missouri Department of Insurance as Liquidator. The Liquidator is charged with gathering the Companies assets and determining their liabilities. Liabilities include operational expenses and claims against insurance policies issued by the Companies. The liquidation proceeding is conducted under court supervision and according to procedures mandated by Sections 375.1150 to 375.1246 Revised Statutes of Missouri (RSMo 2000) Click here for a link to the website. The Liquidator has appointed a Special Deputy Liquidator (SDL) to manage the day-to-day operations of the Companies.