- 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.
- 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.