General insurance Winding-up or Liquidation

[Mataracy]

The insurance Commissioner not only officiates at the birth and growth of an insurer but also at its demise if necessary.
An insurer may be liquidated for a number of reasons, including financial insolvency.

Some liquidations may be voluntary in nature in order to effect a corporate reorganization, merger.
Reinsurance of all outstanding liabilities and contracts may be achieved so that no loss results to policyholders.

A petition for the winding-up of an insurer may be presented to the court either, by policyholders or by the insurance commission. In the first instance, policyholders numbering not less than 50, each of whom holds a policy that has been in force for not less than 3years, on the company to be wound-up.

Your own idea about winding -up or Liquidation is welcome.

 

[Mandy96]

Honestly, I never really knew this is real until I found out now, and believe me I just made my own research about it and I confirmed it that your analysis is legit. If this liquidation is very effective like you explained, then it must really cover a lot concerning the insurer

 

[btaliat]

There are many reasons why insurance companies may wind up. This is not peculiar to insurance companies as other financial businesses also wind up for some reasons. And no matter what happens or what will happen, the insurance company must try to put into consideration the interest of their client

 

[Wisdom01]

I think more investigation on why the liquidation was made would be made to prevent any kind of illegal instance or happenings , so it would be taken to the court and others to be sure if the insurer is stating a truthful terms ,so this are the things that would be considered

 

[Phabbyfundz]

Insurance companies do have a lot of regulations and regulators that hope to oversee the affairs or activities of that insurance company or insurers in that state. They are some process the instance company and insurers go through before approving a policy holder or deeming them fit to be eligible to purchase an insurance policy.