CIGA Reimbursed Close to $56 Million

California Insurance Commissioner Poizner announced the California Insurance Guarantee Association (CIGA) has been reimbursed nearly $56 million by Continental Casualty Company for payments previously made to injured workers.

The California Insurance Guarantee Association was created to pay the claims of insolvent property and casualty insurance carriers that are licensed to do business in the state of California. After Superior National Insurance Company (SNIC) failed, CIGA stepped in and paid more than $500 million in workers' compensation claims. SNIC had purchased a $50 million surety bond from Continental Casualty Company (CCC) guaranteeing the obligations of SNIC. CCC balked at paying the amount owed.

After several years of litigation, the case was successfully settled with Continental paying the sum of $56.25 million. After deducting litigation related expenses, the California Insurance Guarantee Association received nearly $56 million for payments previously made to injured workers.