United Home Insurance Company Receivership/Liquidation FAQs
Frequently Asked Questions About
United Home Insurance Company, In Liquidation
- What is the current status of United Home Insurance Company?
United Home Insurance Company was ordered into receivership for the purpose of its rehabilitation on September 6, 2023. Subsequently, the Pulaski County Circuit Court ordered the Company into liquidation on November 14, 2023. The case number is 60CV-23-6619.
- What is the significance of an Order of Liquidation?
An Order of Liquidation compels the Receiver of United Home to marshal the assets of the company and establish a process by which creditors of the company may file their claims against the company. An order of liquidation allows the guaranty funds/associations in each of the states where United Home wrote business (Arkansas, Kentucky, Missouri to be activated to process and pay, as appropriate, the remaining claims of resident policyholders.
- Why is this action necessary?
United Home was overwhelmed by hundreds of claims related to tornados, hailstorms, and wind events in the region where it did business. The company paid claims until its assets were depleted to an unsafe level. United Home was also affected by the inability to purchase sufficient reinsurance to cover these catastrophic losses.
- What about my claim for unearned premium on my policy?
Your claim for a refund of earned premium will be processed by the guaranty fund/association in your state of residence.
- What happens to my policy with United Home Insurance?
Your United Home policy will be canceled no later than thirty (30) days after entry of the Order of Liquidation unless you cancel your policy at an earlier date. The Order of Liquidation supersedes the order issued by Arkansas Insurance Commissioner Alan McClain that all of United Home’s remaining in force policies were to be canceled on December 31, 2023.
- Will automatic withdrawals for premium payments continue to be withdrawn from my checking account?
Yes, until the policy expires or is cancelled, automatic withdrawals for premium payments will continue.
- Can I still submit claims to United Home Insurance as usual.
Yes, submit your claims to United Home Insurance as usual. - Special Notice to Certain Arkansas policyholders.
Farm and Home Mutual Insurance Company, an affiliate of United Home, has proposed that it be allowed to assume approximately 9,300 policies issued by United Home that meet the underwriting requirements of Farm and Home. If the proposed transaction is approved by the Arkansas Department of Insurance, the policyholders in this group will be notified of the assumption of their policy by Farm and Home Mutual with no break in coverage.
- Do I have to agree to the assumption of my policy by Farm and Home Mutual? No. You may cancel your United Home policy at any time.
- Will the Order of Liquidation apply to Farm and Home Mutual Insurance Company?
No. Farm & Home Mutual is a separate company and is solvent.
- Whom do I contact with questions about United Home Insurance and/or the Liquidation?
Contact the Deputy Receiver at 501-371-2776 or michael.surguine@arkansas.gov.
