The Superior Court of the State of California is expected to rule that Merced Property & Casualty Company is statutorily and legally insolvent and enter an of liquidation. The state’s Insurance Commissioner Dave Jones will be appointed as a statutory liquidator of the insurer under the state law.
In a statement, Jones said, “California law gives us the authority to take over insurance companies that face insolvency. Protecting Camp Fire policyholders who have already suffered through so much was my first consideration.”
In addition, he said, “We are moving aggressively to take the necessary legal action to take control of the company and to trigger the state law enabling the California Insurance Guarantee Association (CIGA) to immediately begin the process of evaluating losses and paying claims.”
The CDI’s Conservation and Liquidation Office is managing the transfer of the insurance company’s claims handling to CIGA. It will send notices to policyholders regarding where and how to file a claim with CIGA for insured losses or the return of any unearned premium on their policy.
