James F. Mahoney, Attorney
Commentaries
 
     

When Insurers Won’t Release Your Money, It's Time to Push for It

If you had a deductible program and haven't received a (satisfactory) refund, regardless of the age of the policies, it's time to look at the amounts your current/former insurers hold and have a serious talk with them

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Your insurance carrier – current or former – may be sitting on collateral pledged by you - cash or letters of credit. If you had a deductible program and haven't received a (satisfactory) refund, regardless of the age of the policies, it's time to look at the amounts they hold and talk to these insurers.

Insurers benefit by holding your money – more than as a hedge against future losses or IBNR. Funds held as collateral are used as statutory capital required by state insurance departments. Holding your collateral well after your loss exposures are virtually eliminated gives insurers free use of other people’s money - yours.

We recently retrieved about 1.5M in cash for a client motor carrier, with more yet to come.

Insurance brokers are great, but don't expect them to help you on this. The relationship between insurer and broker is a bit like that of Rick and Captain Renault in Casablanca, perhaps a little too cozy.