What to know about your auto insurance company when it is facing financial difficult times
Personal injury attorney, Zach Nelson discusses the recent development with one of the big insurers here in Georgia, ACCC Insurance which is based out of Houston, TX.
Recently an order was entered in Travis County, TX placing ACCC Insurance in receivership. It means that currently ACCC is undergoing difficult financial times. The order stresses that ACCC is not insolvent and is being placed in a rehabilitation posture. The company is going to be under the control of a third-party deputy receiver and will be out of the hands of the prior administration that was overseeing ACCC.
What does this mean for you?
As a Georgia policy holder, your policy still remains in effect and you should keep paying your premiums to the extent that you want to stay with ACCC. But it is worthy to note that being in this posture there is always the possibility that the company becomes insolvent and ultimately enters bankruptcy proceedings. While we do not know if that will happen, currently claims are still being adjusted, policies are still being honored but this is something you would want to keep an eye on.
If you are a policy holder and the time to renew is coming up, it may be worth your while to look into some alternatives that are on more solid financial footing. Even though ACCC is going through a rehabilitation period there is nothing to say that it is guaranteed to work, so it is possible that the company ends up becoming bankrupt and you could lose coverage that way.
Further, filing claims with ACCC still proceed as normal. The company is not insolvent so there is nothing to suggest that they cannot pay claims at this moment. However, if you have a claim against an ACCC insured, it is probably a good thing to file that claim sooner than later in the event that the company is ultimately insolvent.
Going forward we are going to keep a close eye on this issue and make sure that our clients that do have claims against ACCC are moving forward as quickly as possible. If you have any questions regarding anything about ACCC, whether you are a policy holder or if you have a case or claim against them, please contact us at Hagen Rosskopf.