Amwest Surety Insurance Company, in Liquidation

PROPERTY & CASUALTY INSURANCE
Property Casualty Unearned Premium – Proof of Claims (POC)

Question: Why is the amount being paid different from the amount requested?

Answer: The unearned premium approved for payment is based upon the premium recorded on the records of Amwest Surety Insurance Company as reconciled to your POC. The unearned premium does not include the $27 in fees paid to the agent to handle your insurance needs or the finance fees/interest paid to the premium finance company if you financed your premium. Additionally, this calculation is the amount of unearned premium remaining on the day of cancellation, July 6, 2001 (not the June 6, 2001 liquidation date). Amwest Surety Insurance Company calculated the unearned premium by using the full term premium times the number of days remaining to normal policy cancellation or renewal date divided by 365 days. For example, if the premium would be $400 times 121 divided by 365 or $132.60. Finally, the unearned premium does not include premium paid for UMH policies, JUA policies, or down payment premium on the replacement policies

Question: Why didn’t I receive a payment if the unearned premium was less than $100? Or why is my payment $100 Less than the unearned premium?

Answer: A State Insurance Guaranty Association is making payment to you. They have a statutory $100 Deductible. Therefore. The $100 is deducted before making payment to the premium finance company or you. Please note that the premium finance company has priority over the insured if there is balance owing to the premium finance company. If the unearned premium is below $100, unfortunately, there is no payment.

Question: Will I eventually get my $100 or unearned premium if the balance was below $100?

Answer: It is unknown at this time whether or not there will be any residual funds to provide a pro-rata distribution to thos claimants with unearned premium deductible claims and the unearned premium balances below $100 not funded by the respective State Insurance Guaranty Associations.

Question: Do I have to file another Proof of Claim form to obtain my $100 deductible or the unearned premium below $100?

Answer: No. The liquidator is maintaining records of these balances and will notify you if funds are available to make a dividend payment to your creditor class. It is important that you continue to notify the liquidator of address changes for this purpose.

Question: What if I haven’t filed a proof of claim?

Answer: Your claim will not be evaluated unless a proof of claim is filed. If you have not filed a proof of claim, you may still do so, however, it will be considered a late filed claim with little likelihood of any distribution. If you believe that your claim should be considered timely instead of late, you may send with it a letter stating the reasons you believe it should be considered timely and we will examine it. This does not mean that your proof of claim status will be changed from late, but it is the only way to try to change the status of a late filed proof of claim.

Question: When will we know if we are going to receive any more money?

Answer: The liquidation process is long and complicated. It is currently unknown when the liquidation will be concluded. If it is ultimately determined there will be a distribution to unearned premium claimants (creditor class 4), you will be notified. However, the likelihood of this occurring is remote.