Access Insurance consumers urged to find new coverage now
News: 2018 Press Release
SACRAMENTO, Calif. — Consumers with Access Insurance Company policies are urged to shop for replacement coverage immediately before their policies are canceled effective April 12. The policy cancellations are the result of a liquidation order issued against Access Insurance Company by the Texas Department of Insurance on March 13.
The Texas liquidation order provides in part that all policies and insurance contracts issued by Access in effect on March 13 shall continue in force only until either the 30th day after entry of the liquidation order; the date of expiration of the policy coverage; or the date the insured has replaced the policy or otherwise terminated the policy, whichever occurs first.
"As insurance commissioner, my first priority is protecting consumers—that includes helping affected policyholders navigate the liquidation process and offering assistance to address their questions," said Insurance Commissioner Dave Jones. "We have been hearing from consumers who are confused about the cancellation notice they received and we want to make sure policyholders understand the steps they need to take."
Any claim filed by consumers with Access Insurance Company prior to March 13 will be transferred by the liquidator to the California Insurance Guarantee Association (CIGA) for payment so do not need to be refiled. Consumers with new claims can submit their claims directly to Access Insurance Company and those claims will be transferred to CIGA. CIGA will provide notice to all Access policyholders of the deadline for filing claims with CIGA. Consumers whose coverage will be terminated mid-policy are also entitled to file a claim with CIGA for the return of the unearned portion of premium previously paid.
Earlier this month, Insurance Commissioner Dave Jones issued a Cease and Desist Order against Access that requires the company to immediately stop writing any new or renewal insurance business of any kind in the State of California.
California consumers who have questions or issues are encouraged to contact the department's consumer service team at 1-800-927-4357.
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Contact information for the guaranty association is posted on the Special Deputy Receiver's website at http://www.accessinsurancesdr.com/.
The Texas Department of Insurance placed Access into liquidation on March 13.
A separate Order to Show Cause, Accusation, and Notice of Non-Compliance were filed in July 2017 charging Access Insurance Company and some of its affiliates with engaging in improper claims handling and improper rating and underwriting practices in violation of the California Insurance Code and the Fair Claims Settlement Regulations. These actions are still pending.
August 2, 2017 news release on department action against Access.
January 23, 2018 news release on department action against Access.
Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.