States regulate insurance companies, and all 50 states have systems in place to protect policyholders if an insurance company goes out of business. That means youre not totally out of luck if your insurance company goes under.
Its important to understand how the process works and what sort of protection it offers. Better yet, know what steps to take to avoid ending up with an insurance company that goes out of business so you dont have to rely on the state to come to your rescue.
Why Insurance Companies Go Out of Business
Although the insurance industry is highly regulated, insurance companies do fail for a variety of reasons. For example, they might underprice their products and have higher-than-expected insurance claims, as long-ter…
Read the full article at: https://www.forbes.com/advisor/life-insurance/company-out-of-business/