Far West Insurance Company, in Liquidation

FREQUENTLY ASKED QUESTIONS
(GENERAL)

Question: Why was Far West placed into liquidation?

Answer: Far West was placed into liquidation because it is statutorily insolvent. A copy of the court order is available on this website. Please refer to the section called NOTICES at www.farwestbonds.com.

Question: Will Far West continue to service the existing bond business?

Answer: No. No later than December 9, 2001, all bonds and policies were cancelled and Far West accepts no liability for claims arising after that date. Some bonds may have another insurer, commonly referred to as a “co-surety” associated with the bond. In such instances, you will want to check your bond to identify the co-surety, if any. If a co-surety is listed, you can refer to this website for further information including how to make the necessary contact. Under the Special Deputy Liquidator's oversight, Far West continues to maintain its claim files.

Question: No one has called me back and can I send a fax a letter to Claimant Services?

Answer: Far West has been trying to get back to everyone who has left a message. Due to the extensive phone calls generated because of the size of the liquidation and the number of persons effected, please allow a day or two for someone to get back to you. Feel free to fax your inquiry to Claimant Services at 818-871-2013, call us at our toll free telephone number: (866) 789-8119, Court Division 800-423-2245, or our direct telephone number: (818) 871-3614; or write to us at Far West Insurance Company P.O. Box 4500 Woodland Hills, CA 91365 Attn.: Claimant Services.

Question: How can I find another surety to replace my bond?

Answer: Please contact your agent for assistance.

Question: Are non-surety lines of business affected by the Liquidation Order?

Answer: Yes. All property & casualty policies are cancelled effective December 9, 2001, however, some policies were already cancelled prior to December 9, 2001 or non-renewed.

Question: Are we protected by a state agency?

Answer: If you have a Property & Casualty claim against Far West or Condor Insurance, such as a homeowner or auto claim, these claims have been turned over to the Guaranty Fund Association in your state. For surety bonds, there are only seven (7) jurisdictions that have a guaranty fund program. They are Arkansas, Kansas, Kentucky, Maryland, Maine, Minnesota, and New York. Far West surety claims in these states have also been forwarded to their respected Guaranty Fund. For contact information, please refer to the section on this website entitled Guaranty Fund Association.

Question: Why isn’t Far West liquidated under the federal bankruptcy laws? How does
liquidation under Nebraska Insurance laws differ from a typical bankruptcy?

Answer: The Lancaster County District Court for the State of Nebraska has exclusive jurisdiction over the liquidation based upon federal law referred to as the McCarran-Ferguson Act. Congress has specifically chosen to exempt state insurance statutes from the federal bankruptcy laws by enacting the McCarran-Ferguson Act and by excluding insolvent state insurance companies from the protections of the Bankruptcy Code. State insurance codes parallel in many ways to the Bankruptcy Code.