FREESTONE INSURANCE COMPANY
PLACED IN LIQUIDATION EFFECTIVE 8/15/2014
LIQUIDATION ORDER
Freestone Insurance Company, formerly Dallas National Insurance Company, has been placed into Liquidation proceedings in the state of Delaware effective August 15, 2014. The Delaware court issued a Liquidation and Injunction Order dated July 22, 2014 but made effective August 15, 2014. The liquidation will be administered by the Delaware Department of Insurance through its Deputy Receiver ("DR"), George Piccoli.
The Liquidation Order permanently enjoins all persons from instituting or further prosecuting any action against Freestone. The Liquidation Order further enjoins all persons from instituting or further prosecution any action in which Freestone is obligated to defend a party for a period of 180 days, or until February 11, 2015. However, as noted below, the Texas Guaranty Act provides for a six month stay of proceedings which is in effect until February 15, 2015.
IMPAIRMENT ORDER
The Texas Commissioner of Insurance has issued an Order effective August 15, 2014 designating Freestone as an impaired insurer. The TPCIGA will become obligated to undertake its obligations under TEX.INS.CODE chapter 462 on that date. A copy of the Commissioner's Order can be found here.
CANCELLATION OF POLICIES
The Liquidation Order further cancels all in-
NEW & PENDING LOSS CLAIMS INFORMATION
Policyholders should continue to notify Freestone of new claims and lawsuits. All
new claims (other than worker's compensation claims, see below) should be reported
to Michael Wiebersch, (972) 233-
The DR will arrange for the transfer of loss claim files to TPCIGA for handling.
Policyholders and claimants are requested to forgo contacting TPCIGA for 4-
If you have insurance through another carrier, that insurance is now primary and you should contact your carrier to make a claim. All forms of other available insurance, including health benefits, must be exhausted before TPCIGA can consider payment of your claim.
WORKERS' COMPENSATION CLAIMS
The DR has arranged for workers' compensation claimants to continue to receive income
benefits without interruption for up to eight (8) weeks without interruption until
TPCIGA has received the Texas claims and can assume handling of payments. Claims
for medical benefits will be handled by TPCIGA once the claim files have been received.
Any new worker's compensation claims should be reported to the Liquidator to the
attention of Charles Winters, (972) 715-
LAWSUITS & STAY OF LITIGATION
TEX.INS.CODE §462.309 provides for an automatic stay of any lawsuit in which Freestone is obligated to defend a party for a period of six months from the date of the Commissioner's order designating Freestone as an impaired insurer, or until February 15, 2015.
UNEARNED PREMIUM
Claims for unearned premium will be processed as soon as possible after TPCIGA receives all necessary financial information from the DR. It is not necessary to file a claim for your unearned premium.
DR CONTACT INFORMATION
You can contact the Deputy Receiver by calling 1 (866) 874-
FREESTONE INSURANCE COMPANY IN LIQUIDATION
c/o Delaware Insurance Department
Bureau of Rehabilitation and Liquidation
704 N. King Street, Suite 602
Wilmington, DE 19801
http://www.delawareinsurance.gov/departments/berg/rehab_bureau_freestone.shtml
Information as of 08/15/2014
Freestone Insurance Company
Information on this site is not legal advice and is not intended to be a comprehensive statement of the law or of the TPCIGA's policies and procedures. References to the laws of any jurisdiction are for informational purposes only and are not a substitute for the official version of a statute. TPCIGA makes no warranty as to the accuracy or reliability of the content of this website or other related websites.
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