Frequently Asked Questions

Background

Affirmative Casualty Insurance Company (“ACIC”) was ordered into Rehabilitation on September 17, 2015 by Judge Janice Clark of the Nineteenth Judicial District Court in and for the Parish of East Baton Rouge, State of Louisiana (the “Court”).  Risk and Regulatory Consulting, Inc. was appointed by the Court as the Receiver of the company. A Permanent Order of Rehabilitation was entered on October 5, 2015. ACIC stopped renewing coverage for existing policyholders after January 7, 2016. On April 11, 2016, the Court found that ACIC was insolvent and ordered the company into Liquidation and appointed Risk and Regulatory Consulting, Inc. as the Receiver of the company for Liquidation.

 

What does liquidation mean?

An insurance company is ordered into liquidation when it can no longer meet its financial obligations, including the payment of claims arising under policies of insurance that it issued. ACIC is insolvent and has insufficient assets to pay its claims and other financial obligations as they become due in the normal course of business. 

 

A state liquidation proceeding for insurance companies is similar in many ways to a federal bankruptcy proceeding for other types of companies.  When a company is liquidated, the liquidator collects the remaining assets of the company and verifies the amount of the unpaid liabilities. The Court will approve the distribution of the assets of ACIC according to Louisiana statutes.  The liquidation process is very complex and is expected to take many years. 

 

I received a letter from the Receiver of Affirmative Casualty Insurance Company. Why did I receive this letter?

Affirmative Casualty Insurance Company was ordered into liquidation. Under the Liquidation Order, all ACIC policies are cancelled effective 11:59:59 p.m. (Central Daylight Time) on May 11, 2016, unless otherwise expired or terminated prior to that date. Please contact your agent as soon as possible to obtain replacement insurance coverage prior to the policy cancellation.

 

What does it mean? 

You received a notice letter because your name appears as a policyholder or potential creditor on the books and records of ACIC. The notice letter was sent to all policyholders, claimants, and entities that might be creditors, informing them of the ACIC liquidation and the claim filing deadline and procedures a claimant must follow in order to pursue a claim in the ACIC liquidation proceedings. Your receipt of this notice does not automatically mean you have a claim against ACIC, but merely indicates you are a potential creditor. Review your own records to determine if you are entitled to make a claim and, if so, follow the procedures set forth in the notice. If you have questions, please review these Frequently Asked Questions in full. If your questions are not covered here, you may submit your questions via telephone or email as listed below.
 

I had insurance coverage with USAGENCIES Casualty Insurance Company, why did I get this letter? 

During 2015, USAGENCIES Casualty Insurance Company changed its name to Affirmative Casualty Insurance Company.


Can I make changes to my policy to increase the amount of coverage?

No changes can be made to any policies issued by ACIC which will increase coverage. If you need to add a driver or increase limits of your policy you should secure replacement coverage from another insurer.

 

I paid off my vehicle, how do I update the lienholder information for my policy?

You may contact the Receiver at (888) 723-0004 to have lienholder, address or other policy information updated.

 

How can I find a new insurance company?

The agent that sold you the current policy may be able to place coverage for you with another insurance company. You may also choose to contact a different agent, check with other local insurance agencies or look on the Internet.
   

What is the status of my policy with Affirmative Casualty Insurance Company? 

Pursuant to the Order, all ACIC policies of insurance which are in force as of the date of the Order are cancelled effective thirty (30) days from the date of the Order at 11:59 p.m. (Central Daylight Time), May 11, 2016. Policies or contracts of coverage with normal expiration dates prior to May 11, 2016, or which are terminated by insureds, cancelled for non-payment of premium, or lawfully canceled by the Receiver or insurer before such date, shall stand canceled as of the earlier date.  

 

Should I continue to pay the premiums for my Affirmative Casualty Insurance Company policy? 

Yes. In order to keep your policy in force you are required to continue to pay the premiums as they become due. You should pay the premiums in the same manner as you did prior to the entry of the Order of Liquidation for ACIC.
 

What is a guaranty association?

The Louisiana Insurance Guaranty Association was created by the Louisiana Legislature and provides coverage for certain types of insurance losses.

 

LIGA will provide coverage for insurance claims which are in excess of $100, and less than $500,000. Coverage for unearned premium claims is limited to a maximum of $10,000 for any one claim. In no event is LIGA obligated to pay a claim in excess of the policy limits of the insolvent insurer.

 

How do I contact the guaranty association?

Phone-             (225) 757-1688

Address-           Louisiana Insurance Guaranty Association

                        ATTN: ACIC

                        2142 Quail Run Drive

           Baton Rouge, LA 70808

 

Since my company has been placed into liquidation, who will pay my claims?

Valid and substantiated policyholder claims incurred prior to the termination of the policy will be paid, where covered, by the Louisiana Insurance Guaranty Association, subject to policy limits and the statutory limits of the guaranty association. The Receiver of ACIC will forward your claim to the guaranty association. Claims which are not covered by a guaranty association or portions of claims which exceed the statutory obligations of the guaranty association become claims against ACIC in the liquidation and may be paid at some time in the future to the extent funds are available.  See below for information on how to file a proof-of-claim in the ACIC Liquidation.

 

What benefits does LIGA provide?

Subject to statutory limitations, LIGA provides three policyholder benefits:

1.) Pays unearned premium claims owed by ACIC.

2.) Pays automobile accident claims of ACIC which cannot be paid by any other insurer.

3.) Defends lawsuits against ACIC’s policyholders.

 

What is meant by other insurance?

Louisiana law states that any other available insurance coverage such as uninsured motorist coverage, collision coverage, workers compensation, health insurance and even Medicaid must pay claimants prior to or in place of ACIC and LIGA. Depending upon the limits of the primary coverage, LIGA may have no responsibility.

 

Can I file a new policyholder claim against Affirmative Casualty Insurance Company?

Yes, continue to report a new policyholder claim or loss to Affirmative Casualty Insurance Company using the following number: (888) 723-0004

 

How do I file a claim against Affirmative Casualty Insurance Company?

If you believe you have a claim against ACIC you must file a proof-of-claim with the Receiver by the bar date using the Proof-of-Claim form. To file by the bar date the Proof-of-Claim form must be postmarked or received by fax by the liquidator no later than 11:59 PM CST on December 31, 2016. Failure to file a timely proof-of-claim may result in denial of your claim. If you have more than one claim against ACIC a separate Proof-of-Claim must be submitted for each claim. You may make copies of the Proof-of-Claim form, request additional copies from the Receiver or download the form from the Receiver’s website at http://affirmativecasualty.com.

 

An ACIC policyholder damaged my car.  What do I do?

Contact your insurer and report the claim.  You may also want to complete and submit a Proof-of-Claim form.

 

How do I check on the status of a pending claim against ACIC?

To check on a claim against ACIC that is currently pending, contact LIGA at (225) 757-1688. Please be patient because it may take several weeks before LIGA has the information that will be necessary to answer your questions.

 

What is the deadline for filing a claim? 

The deadline to file a claim is December 31, 2016.

 

When will claims filed in the receivership be paid?

Claims that are not covered by LIGA that are filed in the receivership can be paid only after the claim is approved and a distribution from ACIC’s funds is ordered by the Court. At this time, it cannot be determined when, or if, the Receiver will be in a position to make a distribution or provide a good faith estimate of the percentage of any future distribution.

 

Why did Affirmative Casualty Insurance Company go into Liquidation?

Based upon the available financial records of ACIC, the Receiver determined that ACIC was insolvent and that further efforts to rehabilitate ACIC would not be feasible. After a hearing, the Court found that ACIC was insolvent and issued the Liquidation Order to protect the interests of the policyholders, claimants and public.
 

How can I find out more information regarding the Liquidation of Affirmative Casualty Insurance Company?

The Receiver will continue to post information to http://affirmativecasualty.com as more information becomes available.

  

How can I contact the Receiver of Affirmative Casualty Insurance Company? 

If you have questions for the Receiver regarding the Liquidation of Affirmative Casualty Insurance Company you may contact him at ACIC@riskreg.com or (888) 723-0004.