A Missouri insurance company that has lost millions of dollars in insurance coverage for a car accident may not have a way to recover the money unless you can prove that you were not negligent.
The Missouri Department of Insurance (MDOI) said it could not provide a complete accounting of the costs to consumers as the insurance company was forced to lay off thousands of employees amid the fallout from the massive flood.
The agency said Monday it will not be making a final determination on whether to award a payout to the company until after the company has given the MDOI the required financial documentation.
The MDOIR announced it was seeking to recover about $50 million from the company, saying it has been forced to make payments totaling nearly $5.5 million.
The company had not given the agency its full accounting of costs, including for workers’ compensation, the Missouri Department for Insurance and Insurance Administration said in a statement.
“MDOIR is in the process of gathering all information available to us, including the financial information and the cost to customers,” the agency said.
MDOII said it would provide a statement to the public on Monday, but it had not been made available to the media.
A spokesperson for MDOIC did not immediately return a call seeking comment.
MGOI had warned in September that the insurance industry was vulnerable to financial collapse and that consumers were “under considerable pressure” to buy insurance.
A federal judge last week ordered the state to repay the insurance companies nearly $100 million, in addition to the roughly $50.4 million the company is owed.
The state said the state should have been more transparent about the costs of covering the flood victims.
A few months after the storm, MGOIC had identified some 200 people who had lost insurance coverage.
The largest loss was $3.5 billion, MDOIS said in September.
The insurer was not able to recover $2.2 billion of the losses, according to the MGOIS statement.
The storm hit the state’s most populated area, St. Louis, on Sept. 23, 2016, with about 17 million people in Missouri affected by the flooding.
More than 5,000 people died as a result of the flood.