| Q. What happens if my
insurance company becomes insolvent?
A. Tennessee Insurance Guaranty Association
(TIGA) has been set up by the legislature to protect you, similarly to how
the FDIC insures bank deposits. Not all types of insurance are covered, but
generally, homeowners , automobile, and other property and casualty lines
are covered. TIGA does not cover life or health lines. Refer any questions
about those lines to Tennessee Life and Health Insurance Guaranty
Association.
Q. Who do I contact to see if my claim is
covered?
A. Tennessee Insurance Guaranty Association,
414 Union Street, Suite 905, Nashville, TN 37219 Phone: 615-242-6839 or Fax
: 615-255-4471
Q. How do I know if I have coverage?
A. Your insurance company must be found to be
both insolvent and liquidated by court order. Either the insured, claimant
or property must be a resident of the state of Tennessee.
Q. I am a business owner. Will TIGA
protect me?
A. Yes, unless you are very large--over
$25,000,000.00 of net worth for third party claims or $10,000,000.00 for
first party claims.
Q. I wrecked my car or my car has been
damaged by another driver -- will TIGA pay for it?
A. For covered claims, TIGA pays up to
$100,000.00 in property damage. You may also be fully protected under your
uninsured motorist coverage and should contact your agent to obtain
coverage.
Q. My house burned -- is it covered?
A. If it is a covered claim, up to
$100,000.00 may be paid.
Q. I just paid my premium -- do I lose it
?
A. Unearned premiums are covered with a limit
of $10,000.00 and a deductible of $250.00.
Q. What are the limits on coverage?
A. Generally, the limit is $100,000.00,
except for workers compensation, which has no limit. There are other
important provisions which limit coverage, just like the limits the FDIC
places on deposit insurance.
Q. Should I cancel existing coverage?
A. First, consult your agent. Generally, it
is in your best interest to replace coverage in an insolvent company as soon
as possible, but your coverage will be cancelled in any event, effective 30
days after the date of Liquidation.
Q. When can I expect help from TIGA?
A. TIGA can act only after it is triggered by
an Order of Insolvency and Liquidation and it receives the claim files.
Neither TIGA nor the Tennessee Department of Insurance can help until the
Commissioner in the insolvent Insurer's home state acts.
Q. Do I have to file a Proof Of Claim with
the Liquidator?
A. It is necessary to file a proof of claim
to protect your rights to share in any distribution, particularly for claims
that are not covered by TIGA or where there are "over the cap" claims.
Q. Can I get help from guaranty funds in
other states?
A. In cases where there are "over the cap"
claims in Tennessee, and where the insured or claimant may reside in another
state, help may be available from guaranty funds in other states.
Please contact the guaranty funds of such other states if you have any
questions..
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