HIH America Compensation & Liability Insurance Company is a now defunct company under the control of the state of California as the liquidation of its assets is completed. Prior to its failure to company was part of HIH Insurance Ltd., Australia’s second-largest general insurance company. HIH America Compensation & Liability Insurance Company was just one of 240 companies in the HIH group, which operated in several countries around the world.
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Of the hundreds of companies that made up the HIH group, eight of them were insurance companies incorporated in Australia. The remainder was a series of holding companies and individual insurance entities located throughout the world. Due to the nature of bankruptcy law in varying countries, the process of liquidation and asset dispersal is all that much more complicated. As testament to this fact, the companies were seized in 2001 and are still undergoing the liquidation process some ten years later.
HIH America Compensation & Liability Insurance Company Failure
Since the failure of HIH Insurance Ltd. is ten years in the past it’s difficult to pinpoint exactly what caused the company to go under. However, at the time the Australian corporation was seized the difference between assets and liabilities, also known as the deficiency, was estimated at somewhere between AUS $3.6 billion and $5.3 billion. Those numbers represent all of the parent company’s operations worldwide. In the United States, HIH America Compensation & Liability Insurance Company still had a deficiency of $407 million at the end of 2010.
For a period of time at the start of liquidation, HIH America Compensation & Liability Insurance Company was in runoff. That means that while no new policies were being issued at the time, the company was still making good on policies that had been previously issued. The monies to service those policies were provided through the various state insurance funds where the company was licensed to do business. It is not clear whether the company is still in runoff though it’s highly unlikely some ten years after the failure.
HIH America Compensation & Liability Insurance Company Business
HIH America Compensation & Liability Insurance Company’s only line of business was workers compensation liability. The company’s U.S. headquarters are located in San Francisco at the following address:
HIH America Compensation & Liability Insurance Company
PO Box 26894
San Francisco, CA 94126
Phone: (415) 836-4100
Toll Free: (800) 394-9301
The company was licensed to do business in 31 states and had offices distributed in those states accordingly. However, because they were officially domiciled in the state of California that is the state where their liquidation is being managed. The state of California now exercises control over the company according to U.S. bankruptcy law.
It’s unclear how much impact the business of HIH America Compensation & Liability Insurance Company had on the worldwide Corporation. It would not be unreasonable to assume there was some negative impact due to the nature of workers compensation liability in the United States. This is further evidenced by the fact that the company still had such a large deficiency last year. If the company were a poor performer, they would be similar to nearly a dozen other workers compensation providers in the state of California to go out of business.
HIH America Compensation & Liability Insurance Company Claims
Individuals or companies who believe they still have claims against HIH America can go on the HIH corporate website to find specific contact information. All U.S. claims are being filed with an individual receiver located in California. Those claims will be thoroughly reviewed and put in line with the remainder of the company’s outstanding debts. Ultimately the receiver will decide who is paid and how much. For claims on policies outside the United States consumers will have to use the appropriate contact information provided on the corporate website.
Due to the fact that HIH Insurance Ltd.’s deficit is so large it is highly unlikely that any individual claims will be paid to satisfaction. Most creditors are going to have to settle for a much smaller amount if they get anything at all. That said; the liquidation process might be nearing its completion. If you believe you have a claim you might want to file as soon as possible before the case is permanently closed.
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