Which insurers are members of PACICC and who funds PACICC?
Unless they are covered by another authorized plan, all property and casualty insurers licensed in a province or territory of Canada are required to be members of PACICC. The exceptions include insurers licensed to sell only one or more of the following – automobile insurance in Manitoba or Saskatchewan and speciality lines of insurance such as surety, fidelity, marine or aviation. All participating P&C insurance companies pay a small levy to PACICC to cover its running costs. Should an insolvency occur, PACICC responds to valid claims and participating insurance companies are assessed for their share of the cost involved.
If my insurer fails, how do I submit a claim?
Contact your broker as soon as possible following the date of the court order declaring the company insolvent. When a company is declared insolvent, a liquidator “winds up” its affairs, including the processing of claims. The liquidator will write to all policyholders and claimants concerning claim procedures. Bear in mind, however, that the liquidator will need some time to examine the insolvent insurer’s records to gather the necessary information. If you have purchased your insurance directly from the insolvent insurer without assistance from a broker, notify your insurer’s head office of the claim.
Does PACICC determine the value of my claim?
No, the liquidator determines the value of your claim, but PACICC will want assurance that the amount is reasonable.
What happens if I disagree with the amount offered?
If you disagree with the amount offered and you cannot resolve the matter with the liquidator, you can try to bring an action in court; to do this, you will need the court’s prior approval.
What happens if I am liable for a claim against me and the claimant doesn’t accept the settlement; can I be sued for the full amount? Who will defend me?
Someone having a claim against you has the right to sue for the full amount and is likely to sue you rather than your insurer. You should direct your inquiry to the liquidator of the insolvent insurer. PACICC is involved only with payment of claims where agreement has been reached on the amounts payable.
What happens if an insurer cancels its membership in PACICC?
The companies which are members of PACICC can terminate their membership only if they cease to be licensed everywhere in Canada for the types of insurance covered by PACICC.