Insurance company forced to exit New York due to financial constraints

Adirondack Insurance Exchange, a company based in Williamsville, New York, recently sent a letter to its customers notifying them of its deteriorating financial position. The letter stated that customers would need to find a new insurance provider as the company would no longer be able to provide coverage. This news came as a shock to many policyholders, including Sarah Andrews, a North Collins woman who had taken out a policy with Adirondack.

Andrews, who was involved in a serious car crash last year in Erie County, filed a lawsuit against Adirondack after the company denied her $300,000 claim. Her attorney, Daniel Perrone, stated that Andrews suffered a broken arm in three places and has permanent damage as a result of the accident. Perrone also mentioned that Andrews was never informed about the company’s financial troubles when she initially signed up for coverage. The lawsuit is seeking more than $300,000 in compensation, and Adirondack has until mid-September to respond.

David Kirst, AAA of Western and Central NY’s Insurance Sales and Operations Manager, commented on the situation, noting that Adirondack’s financial issues led to their withdrawal from providing insurance in New York State. He emphasized that such occurrences are rare but can have significant impacts on policyholders. Kirst provided some tips for customers looking for a new insurance provider, such as staying informed about changes, shopping early to avoid rate increases, and seeking assistance from agencies like AAA to find the right plan.

Kirst also highlighted the importance of choosing a reliable insurance policy over the cheapest option. He explained that underpricing policies, as Adirondack likely did, can lead to financial instability for the company and difficulties for policyholders when claims are denied. While no one likes to pay more for insurance, Kirst emphasized that investing in a reputable carrier with adequate coverage is worth the cost in the long run.

On its website, Adirondack Insurance Exchange assured customers that they would receive pro-rated refunds for any paid premiums if their policies were canceled before the expiration date. The company also stated that they would provide monthly communications to support the transition for policyholders.

When attempting to contact Adirondack Insurance Exchange’s local office in Williamsville, it was noted that there were no cars in the parking lot, and a phone service employee mentioned that there was no way to reach a representative at the company. This lack of accessibility further underscores the challenges faced by customers in light of the company’s financial difficulties.

In conclusion, the situation with Adirondack Insurance Exchange serves as a reminder of the importance of staying informed about changes in insurance providers and selecting a reliable policy that offers adequate coverage. Customers affected by the company’s financial issues should take proactive steps to secure new insurance arrangements and seek assistance from reputable agencies to navigate the transition effectively.