Gl insurance, financed by 3rd party finance co, insurance co went default

Hello. I am new here. I have a roofing company in the dallas tx area. This last april I renewed my GL roofing insurance, paid the down payment and then had payments for the remaining 9 months. In September I get a letter stating that the insurance company has been ordered to go insolvent by the courts. I had the insurance coverage for like 5 months. Now the 3rd party finance company is demanding that I pay the balance of the financed policy, like $1000. still due for the entire year. The finance company is sending me demand letters that I will be turned over to the attorney for prosecution or whatever. Any ideas on what I should do? Thanks, Gary, My phone number if anybody wants to call. 214 680 7708 Thanks

You should have a minimum policy premium. You do owe that, and are subject to year-end audit to determine actual policy premium for the five months covered.

Much as EGG commented.....Might make more sense to just pay the grand and move on to profitable endeavors.... After all, you did promise/agree to the contract.

On the surface, one would think the finance co. would have absolutely nothing to do w/ins. co. or your contract w/ins. co.

Unfortunately, you most-likely will need an attorney to bring a just arrangement.

Egg does have a good point an dit may be closer, if not THE TRUTH, tot he truth of the matter than what I said. Still, I can't see paying for NADA. :woohoo:

You have to wonder if the third-party is truly a third party or just a finance arm of the insurer.

If you had paid the policy in full at inception, you would be out the money and now have no product. No third party involved.

If you had signed a loan agreement with with your bank and paid the policy in full, your bank wouldn't really care where you had spent it and they would expect you to honor the loan.

Can't say for sure but I have a feeling if you don't pay it, your credit is at risk. That's worth a lot more than a thousand bucks in my opinion.

You could pay it and possibly add your name to a list of creditors and recover some portion down the line? Maybe there is a central reinsurance fund backing up bankrupt entities you can apply to for relief or maybe pay in full and that central fund would have to back up a claim if it arises during the policy period even if the originator of the policy is defunct?

Nasty business.

The 'loan' is for Ins. coverage. No coverage/service, no loan. They paid the Ins. Co. to supply the product. Their beef is with the one not honoring their part of the deal.

garye777 Said: Hello. I am new here. I have a roofing company in the dallas tx area. This last april I renewed my GL roofing insurance, paid the down payment and then had payments for the remaining 9 months. In September I get a letter stating that the insurance company has been ordered to go insolvent by the courts. I had the insurance coverage for like 5 months. Now the 3rd party finance company is demanding that I pay the balance of the financed policy, like $1000. still due for the entire year. The finance company is sending me demand letters that I will be turned over to the attorney for prosecution or whatever. Any ideas on what I should do? Thanks, Gary, My phone number if anybody wants to call. 214 680 7708 Thanks

So now the collection agent or attorney for the finance had started to call me. I have not returned their call yet. The insurance company is UNITED CONTRACTORS out of Deleware. Does anybody else have this insurance that was cancelled in September. I did talk to one person out of Houston that had this. Anybody else????