On Wed, 11 Nov 2009 21:25:17 +0000, Orchid XP v8 wrote:

>>> Sure, they're legally obliged to pay out. But if you've just lost your
>>> house and you are now penniless... what are you going to do? Sue them?
>>> Oh, wait, you have no money. :-P
>> 
>> If they don't pay out, you take it (in the US) to the district attorney
>> and let the state prosecute it.
> 
> I have no idea if that works in the UK.

It seems like something the CPS would look into, but I don't know much 
about the fraud laws in the UK.

>> I live not far from a very large fault line, and we're late for "the
>> big one" (earthquake) by about 20 years.  Earthquake insurance is a
>> required part of our policy, and if it does hit, the company will take
>> care of things for us.
> 
> ...unless the company gets liquidated. ;-) (What? How many banks have
> been liquidated recently?)

There's still a liability that the insurance company (which is not a 
bank) has to fulfill on even in the event of bankruptcy.

Jim

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