Texas Moves to Liquidate Non-popularAuto Insurer, Access



Texas insurance regulators placed into receivership and began the approach to liquidating a Texas-domiciled/Atlanta, Georgia-headquartered property/casualty insurance company thon the insurance department says is insolvent.

Access Insurance Co. is primarily a professionalvider of non-popularauto insurance and that is licensed in 22 states, including the 4states within the South Central region — Arkansas, Louisiana, Oklahoma and Texas.

In its order of impairment dated March 14, 2018, without getting intoto detail the Texas Department of Insurance said Access is an impaired insurer and thon the corporate’s liabilities are more than its assets. Under the March thirteenliquidation order issued in a Travis County court, all policies not previously expired shall be terminated as of April 12. Covered claims on all Texas policies shall be paid by the Texas Property and Casualty Insurance Guaranty Association.

Access was founded in 1994 and distributed its policies through independent agents. in line with the corporate, Access is the fifth largest writer of non-popularauto business in California.

In early March, California Insurance Commissioner Dave Jones ordered Access Insurance Co., to right away preventtransacting and soliciting insurance business that state.

The California Department of Insurance said the action Access’s Statutory Income Statement 2017 Preliminary (unaudited), which showed its policyholder surplus was negative $27.6 million as of Dec. 31, 2017, and that its Statutory Income statement 2018 Preliminary (unaudited) report noted its policyholder surplus was a negative $2ninemillion as of Jan. 31, 2018, and after the corporate also did not file its required yearly statutory statement.

In a separate, July 2017 order, California alleged Access and a few of its affiliates had engaged in imrightclaims handling, and that imrightrating and underwriting practices in violation of the California Insurance Code and the Fair Claims agreementRegulations. These actions are still pending.

South Carolina Department of Insurance Director Ray Farmer said in a statement released by his office thon the South Carolina correctty and Casualty Insurance Guaranty Association will work to hide valid claims filed by insureds in his state. He said Access had around 15,500 South Carolinan personpassenger carpolicies in force.

The liquidation order stays all other lawsuits against Access. Cantilo & Bennett L.L.P. of Austin, Texas, which has been appointed by Texas Insurance Commissioner Kent Sullivan because the special deputy receiver, will manage the liquidation process.

a press release agreeing to the liquidation order was signed by Patrick McMenamin, identified as president of Access Holdco LLC.

California Commissioner Orders Insurer to Halt Operations over Insolvency Risk