State takes over Merced insurance company unable to pay out claims after Camp Fire

FRESNO, Calif. (KFSN) -- State regulators are taking over an insurance company that can't pay out all expected claims after a massive Northern California wildfire.

Insurance Commissioner Dave Jones said Friday that destruction from the fire has pushed Merced Property & Casualty Company to insolvency.

On Monday, a judge approved liquidation of the company and its assets.

The company could not immediately be reached for comment.

Insurance department spokeswoman Nancy Kincaid says the department doesn't know how many people affected by the Camp Fire held insurance from the company or the total amount of claims.

The fire that sparked Nov. 8 destroyed more than 13,000 single family homes and decimated the town of Paradise, population 27,000.

People who lost their homes in the fire will still have their claims met by the California Insurance Guarantee Association.
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