What action should a policyholder take if they suspect their insurer is insolvent?

When a policyholder suspects that their insurer is insolvent, the appropriate action is to contact the Arizona Insurance Department. This agency is responsible for overseeing insurance companies operating within the state and can assess the financial stability of insurers. If there are concerns about insolvency, the department can provide essential information regarding the status of the insurer and any potential implications for policyholders.

The Arizona Insurance Department can also guide the policyholder on what steps to take next, whether that means filing a claim with the state’s guaranty fund or seeking alternative insurance options. It's essential for policyholders to be proactive in such situations to protect their interests and ensure they have the support needed to navigate any potential loss of insurance coverage.

In contrast, waiting for notifications from the insurer does not actively address the concern and could lead to a lapse in coverage. Filing a lawsuit is premature at this stage and may not be necessary if the insurer is indeed insolvent, as the insurance department often handles such situations. Therefore, reaching out to the Arizona Insurance Department is the most prudent first step.