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Liquidation Order

Tower Insurance Company was found insolvent and ordered into liquidation on 6/7/2001. The court appointed liquidator will forward open claims to each State Guarantee Fund. The California Insurance Guarantee Association (CIGA) anticipates receiving all the open California claims from the liquidator within 30-days of the liquidation date.

If your insurance company goes bankrupt and you have a claim, CIGA may be able to help.

CIGA is a limited fund set up by California law to pay for some, but not all types of claims. However, there are certain requirements your claim must meet to be covered by CIGA.

What is the California Insurance Guaranty Association (CIGA)?

CIGA is a not-for-profit, unincorporated, statutorily created association that pays certain covered claims of insolvent insurance companies' policyholders and claimants. Guaranty associations exist in every state. California state law requires all licensed property and casualty insurance companies that issue policies for covered lines of insurance in the State of California be a member of CIGA.

CIGA handles only certain property, casualty, and workers compensation claims. CIGA does not cover obligations arising from mortgage guaranty, financial guaranty, fidelity/surety insurance, credit insurance, title insurance and ocean marine insurance.

What is the role of CIGA?

CIGA exists to ease the burden on policyholders of and claimants against an insolvent insurer, by picking up where your insurance company left. CIGA administers covered claims following the liquidation order and finding of insolvency. Generally, the coverage CIGA provides is up to the limits set by the policy or by statute, whichever is less.

How to File a Claim

Workers' Compensation Claims

If you have an existing claim that was open prior to Tower Insurance Company being ordered into liquidation on 6/7/2001, or need to file a new claim for a date of injury under a policy issued by Tower Insurance Company, please reach out to us.

If your California workers’ compensation claim was open at the time of liquidation, the court appointed liquidator is expected to forward it to CIGA. If your claim was closed at liquidation or you are filing a new claim, CIGA will need to reach out to the court appointed liquidator on your behalf to request your claim to be sent to us or to request a new claim to be created and sent to CIGA.

Premium Refund

If your policy with Tower Insurance Company was cancelled before its maturity or expiration date because of Tower Insurance Company being ordered into liquidation on 6/7/2001, you may be eligible for a refund of unearned premium. Please reach out to us and prove your policy number and the best way for us to contact you.

CIGA will need to reach out to the court appointed liquidator to receive policy information on your specific policy before eligibility for a premium refund can be determined.

Don't have a claim or policy?

For persons or organizations with outstanding issues such as subpoenaing records, request for loss runs or matters unrelated to a claim or policy, CIGA as California’s insurance guarantee fund may not be able to assist you. You may need to reach out to the court appointed liquidator/receiver, who is the custodian of records for Tower Insurance Company ordered into liquidation/receivership on 6/7/2001.

Tower Insurance Company
Nebraska Department of Insurance
(402) 471-2201

Please note the last day to file a proof of claim (POC) with the liquidator/receiver is 5/25/2001.

Frequently Asked Questions

Will someone from CIGA contact me about my claim?

CIGA will endeavor to contact each person who has an open claim on file with the insolvent insurer. Additionally, most liquidators attempt to contact all known claimants and policyholders notifying them of the process for filing a claim in the liquidation proceeding.

As soon as possible after receiving the claim files from the company receiver (referred to as a liquidator in some states), CIGA will mail out letters detailing a person's rights under the Guarantee Act and let that person or entity know who will be handling their claim. If you do not hear from CIGA within a month from the date the company was declared insolvent, please contact CIGA at your convenience. However, bear in mind that CIGA will be unable to provide specific information about your claim or to make payments until CIGA has received your claim from the court-appointed receiver.

Is there a deadline to file a claim post-liquidation?

Claims for statutory workers' compensation benefits do not have a deadline for filing a claim with CIGA. However, the claim must have been timely filed in accordance with the procedures of the California Workers' Compensation Act.

For all other types of claims, the deadline for filing a Proof of Claim (POC) with the receiver/liquidator is 5/25/2001. Even if you have an open claim, you should file a proof of claim with the liquidator prior to this date.

Nebraska Department of Insurance
(402) 471-2201

Will my benefits be delayed?

Since CIGA must first obtain the claim files from the Liquidator of the insolvent insurer, some delays may occur. Rest assured, we make every effort to quickly identify and expedite the handling of all claims.

Is there a limit to what CIGA will pay?

Generally, yes. Claims in excess of $100 for Auto, General Liability, Property and Casualty are covered up to a maximum of the policy limits or $500,000, whichever is less.

A claim for damage to, or loss of, a dwelling structure under a policy of residential property insurance shall not exceed one million dollars ($1,000,000) or the amount recoverable under the policy, whichever is less.

There is no maximum for workers compensation claims. However, the claim must have been timely filed in accordance with the procedures of the California Workers' Compensation Act.

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CIGA operates in accordance with California law

CIGA is authorized to pay and discharge only certain “covered claims” as that term is defined under California Insurance Code Sections 1063.1 and 1063.2 subject to additional statutory and case law limitations. The “covered claims” that CIGA is authorized may be more limited and/or restricted than the coverage that would have been afforded under the policy issued by the insolvent and liquidated insurer. To qualify as a “covered claim” for CIGA, the claim must satisfy all the requirements set forth in California Insurance Code Sections 1063.1 and 1063.2, including the requirement that the claim must be presented to the Liquidator in this state, if any, or CIGA on or before the last date fixed for the filing of claims in the domiciliary liquidation proceeding.