AIC Frequently Asked Questions
What is LIGA?
The Louisiana Insurance Guaranty Association (LIGA) is a private association of insurance companies established by Louisiana law to provide certain benefits to the policyholders and claimants of Louisiana licensed and authorized insolvent insurers.
What does insolvency or liquidation mean?
An “insolvent insurer” means that a company is unable to pay all the amounts owed to claimants and creditors. “Liquidation” is a court proceeding in which the affairs of an insurer will be decided. Everyone who has claims against the insurer must file a “proof of claim” with the court appointed receiver. Receiver contact information is listed at the bottom of this form.
What is Affirmative Insurance Company?
Affirmative Insurance Company is an Illinois insurance company which was admitted to sell automobile insurance in the state of Louisiana. Affirmative Insurance Company was declared insolvent by the Circuit Court of Cook County Illinois on March 24, 2016, and is now in liquidation.
I received a notice, what do I need to do?
The Illinois receiver sent out many notices alerting people who may have insurance with, a claim against, or have done business with Affirmative Insurance Company. If Affirmative Insurance Company is currently insuring your vehicle(s), you should contact your insurance agent immediately to arrange replacement coverage.
Anyone owed money from Affirmative Insurance Company should file the Proof of Claim form as instructed. If you are unsure whether you are owed money or not, please consult with your agent or attorney.
Is there a deadline to file claims?
All claims against Affirmative Insurance Company or LIGA must be filed at the earliest opportunity by filing of the Proof of Claim form with the Liquidator. A Bar Date will be established by the Court after which claims will NOT be accepted.
What benefits does LIGA provide?
Subject to statutory limitations, LIGA provides three policyholder benefits:
1.) Pays unearned premium claims owed by Affirmative Insurance Company.
2.) Pays automobile accident claims of Affirmative Insurance Company which cannot be paid by any other insurer.
3.) Defends lawsuits against Affirmative Insurance Company’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 Affirmative Insurance Company and LIGA. Depending upon the limits of the primary coverage, LIGA may have no responsibility.
I have an open lawsuit, what will happen to that proceeding?
A permanent injunction and stay has been granted for all claims against Affirmative Insurance Company. LIGA is afforded a separate statutory six month stay. While LIGA is hopeful that many claims can be resolved without litigation, the proper procedure to move a pending case forward at the end of the stay is to amend the instant case to name LIGA.
My claim will prescribe during the Stay; will I be barred if I wait until the LIGA Stay is lifted? How do I protect my rights?
If you would like to avoid prescriptive issues, you should file your suit naming and serving LIGA, but you should not take any further action during the stay. Your petition should reference the stay, thereby advising the court that no answer is expected in the normal periods.
NOTE, THE STAY DOES NOT WAIVE PRESCRIPTION. YOU MUST TAKE ACTION WITHIN THE APPROPRIATE STATUTE OF LIMITATIONS.
What is the claim process for auto claims?
The receiver is forwarding claims to LIGA. This may take several weeks. Upon receipt, LIGA will assign each case to an adjuster who will be responsible for:
1.) Investigation of the claim.
2.) Payment of covered claims as defined by statute.
3.) Refer petitions and suits to counsel for defense of insured on non-meritorious claims.
What is the claim process for unearned premium claims?
Claimants should file claims for return of unearned premium with the Illinois receiver. The receiver will check the records of the receiver and forward to LIGA information regarding any amounts due you. LIGA will pay claims based on the receiver’s information and recommendation.
What if I am a vendor who provided services to the insolvent insurance company and has invoices that are not paid?
LIGA does not fund general creditor claims against Affirmative Insurance Company for services rendered prior to the liquidation order. Agents, attorneys and other vendors are encouraged to file a proof of claim with the receiver if they are owed any amounts.
How can I contact LIGA?
Louisiana Insurance Guaranty Association
2142 Quail Run Drive
Baton Rouge, LA 70808-4126
NOTE, DUE TO THE VOLUME OF CLAIMS BEING REFERRED BY THE LIQUIDATOR, YOU MAY EXPERIENCE DELAYS IN RECEIVING RESPONSES. WE APOLOGIZE FOR THE INCONVENIENCE.
How do I contact the Illinois receiver?
Affirmative Insurance Company in Liquidation
C/O Office of the Special Deputy Receiver