Insurance Corporation of New York Auto Insurance Review

The Insurance Corporation of New York began in Connecticut on May 29, 1968 and is relatively well respected among auto insurance companies. The current president of this company is Bruce Charles Shulan.

Two other known employees of this company are the treasurer and the secretary. The treasurer, Nicole Suzanne Morris and the secretary, Stephen Arthur Eisenmann joined the president in offering auto insurance policies. Enter your ZIP code into our FREE quote comparison tool to start saving money!

Insurance Corporation of New York’s Location

The address is:

1499 Post Road Second Floor                                                                                                                                                                                                        Fairfield, CT 06824

The telephone numbers are:

(203) 418- 4100 and (888) 242-7899

Insurance Corporation of New York has contact information for those who have already filed claims with the company. It cannot, however, be used for the purpose of obtaining a quote or purchasing cheap auto insurance.

The company does not have a website for people to learn anything about the company.

Insurance Corporation of New York’s Financial Standing

The Insurance Corporation of New York has financial information well known to the public as well. Its assets amount to $62,200,374 and its capital has been listed as $3,900,000, but its net surplus is recorded as $0. It does not currently have an A.M. Best rating.

Bankruptcy

People will not be able to purchase affordable auto insurance from the Insurance Corporation of New York because it was liquidated on March 10, 2010. On June 30, 2009, the New York Superintendent of Insurance placed this company into rehabilitation. Then, the company went into pre-liquidation.

What Is Rehabilitation?

Rehabilitation was the process by which the New York Superintendent of Insurance tried to help Insurance Corporation of New York remain in business and be financially solvent again.

Because the Superintendent was unable to succeed at this goal, the company was moved on to the liquidation phase.

Insolvency

After the process described above was complete, the court found Insurance Corporation of New York to be insolvent. What has been happening with this company is that the Liquidator has had the task of selling the company’s assets, hopefully, for a profit. After the sale, the proceeds will be disbursed to those who have unfinished business with Insurance Corporation of New York.

Now that Insurance Corporation of New York is going through liquidation proceedings, those who have unresolved claims must not enter into any legal action against the company.

Everyone was to be notified of the rehabilitation and the liquidation of this insurance company, so all clients would have received instructions on what they need to do to proceed.

Guaranty Associations Take over the Company’s Operations

Clients of Insurance Corporation of New York will receive any payment they are entitled to from the guaranty association in their states. These guaranty associations are now charged with paying out any claims that are due, and will continue to do so until everything has been paid.

The Purpose of the Guaranty Association

When an insurance company such as Insurance Corporation of New York goes out of business, it will be backed up by the state’s Guaranty Association.

During the process, clients will need to pay their premiums, and these clients will still be covered under their insurance policies they have with the insolvent company.If they stop making these payments because they know that the company is insolvent, their business will not be completed.

Clients of Insurance Corporation of New York must be aware that they may not receive everything that they believe they deserve. The Guaranty Association cannot always fulfill everything that may be guaranteed in their contracts. These associations have a limit to the amount of money they will pay for claims.

Client Transfer to Other Insurance Companies

All may not be lost if the Guaranty Association is not able to pay some people’s claims. In the event that this occurs, the association has the option of transferring these particular clients to another auto insurance company.

People do not necessarily lose everything when they purchase their auto insurance from a company that may eventually go bankrupt, such as Insurance Corporation of New York.

It is still wise to proceed with caution before they purchase a policy from any new auto insurance company.

The Importance of the Credit Rating

The reason that people need to be interested in an insurance company’s A.M. Best rating is that they can discern whether or not a company is about to be in Insurance Corporation of New York’s position in the near future. If it were to have a rating by A.M. Best, Insurance Corporation of New York would have an “F” for Liquidation. Enter Your Zip code for quotes from financially solvent companies.

Vulnerable Ratings

Before a company reaches liquidation, it will be rated as vulnerable by A.M. Best. The grades that people will want to avoid are:

• Fair: B or B-
• Marginal: C++ or C+
• Weak: C or C-
• Poor: D
• Under Regulatory Supervision: E

Final Thougts

Although people will not be tossed aside after their auto insurance companies become insolvent, they will want to avoid this situation if at all possible. Try our FREE quote comparison tool by entering you ZIP code!

After they receive a list of auto insurance companies, they will have the opportunity to check their credit ratings. One place where they can find this long list of auto insurance companies will be right on their computer screens after they enter their ZIP code into our comparison feature.