Mutual Aid eXchange had filed bankruptcy affecting most of its clients. Prior to the company’s announcement that it was declaring bankruptcy, many people resorted to Mutual Aid eXchange, or MAX Insurance, for coverage on their property.
Mutual Aid eXchange Declared Bankruptcy
Following a major insurance company’s bankruptcy filing, homeowners are being advised to review their policies since doing so might cost them thousands of dollars as reported in the Sun.
All Mutual Aid eXchange insurance customers were informed of the news, and some switched to other carriers, the insurance center claims. On August 22, the District Court of Shawnee County, Kansas, issued a liquidation order for the insurance firm.
Mutual Aid eXchange Started in 2001
Following the appointment of the Commissioner as the company’s Rehabilitator via an Order of Rehabilitation the District Court of Shawnee County Kansas had ordered the liquidation of Mutual Aid eXchange Insurance on August 22.
The company’s financial health was in doubt for a number of years. In 2019, the rating agency ‘AM Best’ revoke the company’s ratings at its own request citing irregular operating performance which was primarily brought on by weather-related mishaps.
Nearly 30,000 MAX insurance were still in effect nationwide as reported by Coverager.