CALIFORNIA INSURANCE GUARANTEE ASSOCIATION.ppt

CIGA 2005 CALIFORNIA INSURANCE GUARANTEE ASSOCIATION 2005 HISTORY ESTABLISHED IN 1969 CALIFORNA INSURANCE CODE, ARTICLES 14.2 AND 14.25 §1063 CIGA Structure BOARD OF GOVERNORS APPOINTED BY THE INSURANCE COMMISSIONER 9 MEMBER COMPANIES 4 MEMBERS FROM PUBLIC SECTOR CIGA ORGANIZATION Board of Governors Executive Director Finance Department Human Resources Operations Audit Claims - Liability Department - Workers’ Compensation Department FUNDING Assessments Distributions form Estates Investment income Borrowed funds CIGA FUNDS WORKERS’ COMPENSATION PERSONAL LINES OTHER NOT COVERED Life, Annuity and Disability Title Fidelity and Surety Credit Mortgage financial Ocean marine IMPORTANT CIGA IS NOT AN INSURANCE COMPANY ISSUES NO POLICIES COLLECTS NO PREMIUM NO PROFITS ASSUMES NO CONTRACTUAL OBLIGATIONS TO THE INSUREDS HOW IS CIGA TRIGGERED? SUPERIOR COURT LIQUIDATION ORDER AND A FINDING OF INSOLVENCY OF THE INSURER Pre-2000 4,100 Claims WC claims 5 WC claims staff 1 TPA 2,360 Liability claims 6 liability claims staff 1 TPA Post 2000 LMI Insurance Co. 727 liability claims Superior National Ins. Companies 31, 140 wc claims Credit General Ins. – Ohio 2,800 wc claims 942 liability claims HIH Great States Ins. 7,492 wc claims 2001 Amwest Surety Ins. Co 174 Auto Liability claims Sable Ins. Co 578 wc claims 279 liability claims Frontier Pacific Ins. 2,824 auto liability 2001 Far West Insurance 284 auto liability claims Reliance Insurance Companies 7,984 wc claims 7,900 auto liability claims PHICO 506 wc claims 77 liability claims 2002 National Auto Casualty 75 wc claims 1,610 auto homeowners Western Specialty . 655 auto liability claims Paula Insurance Co 3,593 wc claims 2002 American Horizon 159 auto liability Alistar Insurance 380 wc claims 1,039 auto liability claims 2003 Western Growers 600 wc claim Millers Insurance Co. 138 auto liability Legion Villanova Insurance Companies 15,000 wc claims 12,