Property And Casualty Insurance Compensation Corporation
What Does Property And Casualty Insurance Compensation Corporation Mean?
The Property and Casualty Insurance Compensation Corporation (PACICC) is a Canadian organization dedicated to protecting insurance policyholders from the risk of their insurers becoming insolvent. This not only safeguards individual policyholders but also boosts consumer confidence in Canadian insurers and the insurance market as a whole.
Insuranceopedia Explains Property And Casualty Insurance Compensation Corporation
When an insurance company becomes insolvent, it can be devastating for policyholders. They risk losing their coverage and may struggle to find a new policy with comparable terms, such as premium discounts for claims-free years, specially negotiated rates, and specific policy inclusions.
Additionally, policyholders are left vulnerable. Until they secure a new policy, they are unable to file claims and receive reimbursement, meaning they bear the full weight of any loss incurred during that period.
The PACICC was established to address this issue and protect property and casualty policyholders from the fallout of insurer insolvency.
