U.S. – CAL INS Takeover Failed Insurer

U.S. – CAL INS Takeover Failed Insurer

On 30 November, 2018 CAL INS took control of a small failing insurance firm.

  • Legal action was to secure assets and take control of Merced Property & Casualty.


  • Action taken to protect policyholders, including those who suffered losses in fires.
  • Claim volume from the fire has overwhelmed the small insurer causing insolvency.
  • California Insurance Department conservation and liquidation office, established by law to handle the liquidation is managing transfer of claims handling to CIGA.
  • Policies remain for 30 days, then customers should go to other insurer for cover.

Filing Claims

  • Once the court issues the order, policyholders will be told about where and how to file a claim with CIGA for losses or return of any unearned premium on their policy.
  • Will review all property insurers in California to ensure properly manage exposure.