PACICC

Card Set Information

Author:
ED_6C3
ID:
270309
Filename:
PACICC
Updated:
2014-04-12 13:55:33
Tags:
6C
Folders:
Solvency
Description:
6C
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  1. PACICC - The Plan
    • designed to provide a reasonable level of recovery for claims of most P&C policyholders
    • excludes life (own plan), aircraft, credit, crop, … (distinctive), MA SK, QC BI auto (govt)
    • all participating insurance companies are members (all registered); can’t withdraw
  2. Procedure after an insolvency
    • PACICC representatives consult with court appointed liquidator
    • PACICC is not called upon to make any payments until after the winding-up order
    • major accounting firms tend to be invited, except the auditor of the insolvent insurer
    • PACICC has discretion to make payments to third parties
  3. Payments under PACICC
    • maximum recovery is $250K for all covered policies (except pers. property, max $300K)
    • UEP is covered 70%, for a maximum eligible premium of $1,000 ($700 recovery)
    • claims by persons having special relationship with insolvent insurer may be excluded
  4. Assessment process
    • levelled against particular participating insurers licensed in the participating jurisdiction
    • separate assessments are made in respect of market share for each jurisdiction
    • assessments are limited to shortfall between amounts advanced and recovered
    • also allowed to collect some pre-insolvency funding
  5. 4 financing mechanisms
    • assessment of participating insurers
    • a compensation fund
    • liquidated assets of the insolvent insurer
    • recoveries from third parties

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