What Happens When A Company Becomes Insolvent And Is Liquidated?
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UPDATED: Sep 15, 2020
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Other companies that do business in that state will usually rescue the failed company with the advice and cooperation of the state insurance department. If the failed company is small, a larger company will often be designated to take it over. If a large company should fail, various healthy companies and perhaps several state insurance departments may become involved in devising a plan for the rescue. The goal is always to protect the policyholders and make certain that insurance customers can have faith that their policies will be honored.