Frequently
Asked Questions
1. What
is the Mississippi Insurance Guaranty Association (MIGA)?
Mississippi Insurance Guaranty Association (MIGA) is
an association of all insurance companies that are licensed
to write all kinds of
direct property and casualty insurance except those
lines of insurance identified in section 83-23-105 of
the Guaranty Act. MIGA was created in 1970 as a non-profit
unincorporated legal entity.
2. Is MIGA an insurance
company?
MIGA is not an insurance company. MIGA’s sole
duty is to provide a mechanism for the payment of certain
covered claims under certain insurance policies resulting
from the insolvency of an insurer, to assist in the
detection and prevention of insurer insolvencies, and
to provide an association to assess the cost of such
protection among insurers.
3. What
happens to my insurance policy when the insurance company
is liquidated?
After the courts have declared the company insolvent
and liquidated, the insurance policy will remain in
force, unless cancelled or expired, for thirty days
after the order of liquidation. After thirty days, the
policy is cancelled and coverage has to be replaced.
4. Will
I receive a premium refund?
Your unearned premium may be a covered claim as defined
in the
statute. MIGA can pay an amount in excess of $50.00
but not exceeding $300,000 per policy, for covered claim
for return of unearned premiums.
5. Which
guaranty association will handle my claim?
After a proper order of liquidation with a finding of
insolvency has been entered, claims are distributed
by the liquidator to the guaranty where the insured
or claimant resides, or in the case of a business where
they are principally located.
6. What
do I do with legal bills and expense bills incurred
prior to the date of insolvency?
Legal and expense bills incurred prior to the insolvency
date should be forwarded to the liquidator of the appropriate
insolvent insurance company. MIGA can only consider
these charges for payment if incurred after the date
of insolvency.
7. Will
the policy coverage remain the same?
In some situations you may not be able to recover all
of your policy benefits from MIGA. Because the guaranty
association is designed as a safety net and not a replacement
for insurance coverage, the guaranty act contains a
number of limitations on the kinds and amount of claims
that MIGA can pay. With the exception of workers’
compensation benefits, there is a limit, or cap on the
amount of benefits payable for claims of claimants.
The per-claimant limit is excess of $50.00 but not exceeding
$300,000 or the limit of the policy, whichever is less.
Also, any person seeking payment of a claim from MIGA
must first exhaust any rights he or she may have under
any other insurance policy or other source of insurance,
and MIGA is entitled to a credit for those amounts recovered
under another policy.
8. Are
there any limits to the workers’ compensation
benefits that MIGA can pay?
Workers’ compensation benefits are paid based
on the applicable
workers compensation laws and rules and MIGA law.
9. Will
there be any interruption in my workers’ compensation
benefits?
MIGA will make every effort to ensure that the bi-weekly
workers’ compensation benefits will continue without
interruption. However, sometimes delays are unavoidable
due to the availability of the claims files and necessary
information from the insolvent insurance company.
10. Will
I be able to continue under the care of my current physician
for my workers’ compensation claim?
You should have your doctor contact MIGA for authorization
and billing information.
11. Will
the same attorney represent me in the lawsuit currently
pending?
MIGA may choose to retain the same attorney, or we may
decide to refer the case to a different attorney.
12. How
do I report a new claim to MIGA?
All new claims should be reported to the liquidator
of the
insolvent insurance carrier for distribution to the
appropriate
guaranty association.
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