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Insurance Definition: LIQUIDATION

By Compuquotes Team on March 27th, 2008

LIQUIDATION:

Definition:

  • Enables the state insurance department as liquidator or its appointed deputy to wind up the insurance company's affairs by selling its assets and settling claims upon those assets. After receiving the liquidation order, the liquidator notifies insurance departments in other states and state guaranty funds of the liquidation proceedings. Such insurance company liquidations are not subject to the Federal Bankruptcy Code but to each state's liquidation statutes.

Information provided by Insurance Information Institute

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