Impaired insurer

Impaired insurer,

Definition of Impaired insurer:

  1. An impaired insurer is an insurance company that is potentially unable to fulfill its policy obligations and has been placed under rehabilitation or conservation. An impaired insurer is not insolvent but it does pose a potential threat to its policyholders. States consider impaired insurers a risk because they may be unable to fulfill obligations afforded to its citizens in the case of an emergency.

  2. An insurer which has either gone out of business or filed for Chapter 11 bankruptcy. Impaired insurers must be backed by a guaranty association which pays its entitled policy holders.

  3. State insurance commissions may determine that an insurance company may be an impaired insurer if is running into trouble and may be unable to fulfill its obligations. A court can place the insurer in conservation or rehabilitation until the health of the company improves enough that the risk of insolvency has ended. An impaired insurer that is unable to exit court-ordered conservation or rehabilitation may be considered an insolvent insurer and may be forced into liquidation.

How to use Impaired insurer in a sentence?

  1. State insurance commissions may determine that an insurance company may be an impaired insurer if is running into trouble and may be unable to fulfill its obligations.
  2. States consider impaired insurers a risk because they may be unable to fulfill obligations afforded to its citizens in the case of an emergency.
  3. An impaired insurer is an insurance company that is potentially unable to fulfill its policy obligations and has been placed under rehabilitation or conservation.
  4. An impaired insurer is not insolvent but it does pose a potential threat to its policyholders.

Meaning of Impaired insurer & Impaired insurer Definition