Failing Insurance Company Question

I have a realtive who has been paying an insurance policy that will provide for nursing home/sitter should she become incapacitated...

she recently received a letter stating basically, that the insurance company has not been charging adequate rates to pay out its projected claims and that the company is going into some kind of receivership whereby some garantee comittee will handle its finances going forward...

this relative of mine has likely aged to the point that getting another insurance policy to cover this is not really an option...

my question is, should she just quit paying on the policy and cut her loses or should she keep paying and expect that the rates/benefits paid once the "reorganization" is done will be worthwhile and a reasonable program to be involved in?...

sorry for the sketchy terms that I used to explain this, but I am not knowledgable at all on insurance and don't really know anyone who is that would not just be trying to sell more insurance...