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Questions & Answers > General > How and when will the claims of policyholders in the Segregated Account be paid?

The following questions and answers are provided to the general public for informational purposes only. They are not legal documents and do not bind the Segregated Account of Ambac Assurance Corporation, the Office of the Commissioner of Insurance, or the Rehabilitator to any position or interpretation of the rehabilitation court's orders in these proceedings, now or in the future. Interested parties should review the court documents available on this site and consult their own legal counsel with any questions they may have regarding any effect this rehabilitation proceeding may have on their legal rights and obligations.

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AAC has issued a secured note and an aggregate excess-of-loss reinsurance policy to the Segregated Account in order to pay policyholder claims. It is anticipated that Segregated Account policyholders will receive a percentage of their claims in cash and the remaining percentage in interest-bearing notes. The initial distribution percentages and payment mechanics will not be finalized until the final Rehabilitation Plan is approved by the rehabilitation court.

Barring further developments, claims payments will not be made to Segregated Account policyholders until the Plan of Rehabilitation is finalized by OCI and approved by the rehabilitation court. Policyholders should nevertheless submit their notices of claims or similar demands for payment pursuant to the procedures and service requirements specified in their policies or contracts. Those demands for payment will be tracked and recorded so that they may be processed for payment once the Rehabilitation Plan is approved. OCI currently anticipates that claims payments will commence at that time.

Last updated on March 27, 2010 by Ambac Policyholders Administrator