Questions & Answers > Policyholders > If a policy insuring a bond I own is allocated to the Segregated Account, does that mean that I won’t continue to get 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.
Search the FAQ for entries containing:If a policy allocated to the Segregated Account covers a performing asset, you will continue to receive payments based on the underlying performing asset as before.
However, the majority of policies that have been moved to the Segregated Account insure RMBS securities. It is anticipated that these policyholders (which are the trustee of the relevant securities) will receive a certain percentage of their claim(s) in cash and the remaining percentage of their claim(s) in deferred payments. The initial distribution percentages and payment mechanics will not be finalized until the Plan of Rehabilitation is approved by the Rehabilitation Court.
Last updated on March 25, 2010 by Ambac Policyholders Administrator
