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CA Guaranty Fund
Posted: Mon Oct 13, 2008 11:15 am
by tuffdeal
I'm somewhat mystified. It's my understanding that the CIGA fund is currently over $2 Billion in debt yet we have not had any CIGA surcharges in quite a few years. If it is verified that they are that far in debt, then why is the CIGA surcharge not resurrected.....especially during these trying economic times when some of the large admitted insurers [notably the AIG admitted carriers] are in severe turmoil?
Re: CA Guaranty Fund
Posted: Tue Oct 14, 2008 11:53 am
by InsMgmt
Back in April, Steve Poizner announced that he was unleashing his CDI investigators on the CIGA because of assertions about management and internal control problems at the Association. He stated that the investigation would take about 6 months, so I'm guessing that we should be hearing the results in the next couple of weeks or so.
Re: CA Guaranty Fund
Posted: Mon Oct 20, 2008 3:21 pm
by gregcw
Does CIGA work differently from OIGA (Oregon Insurance Guaranty Fund)? In Oregon they assess all insurors for funds paid out of OIGA.
My impression from this is that, if CIGA is in debt it is because funding revenues are not adequate to pay their operating expenses. They should have had a surcharge on policies to catch them up.