TEXAS SELECT / VESTA INSURANCE GROUP
LIQUIDATION ORDER
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A Liquidation Order was issued by the Travis County Court on August 1 for the purpose of liquidating the following companies, known as the “Vesta Companies”:

    • Texas Select Lloyds Insurance Company
    • Shelby Casualty Company
    • Shelby Insurance Company
    • Vesta Fire Insurance Corporation

The Liquidation Order contained a finding of insolvency for the companies. The order also provided that the Vesta Insurance Corporation will not be liquidated but will remain subject to the previously issued order of rehabilitation. This order generally constitutes the trigger which activates insurance guaranty associations in the states which these companies were licensed to do business . The associations cover claims for certain policy losses and unearned premiums of policies with the insolvent insurers, up to certain statutory limits.

This order and other orders issued by the court regarding these companies are available at the website of Special Deputy Receiver Prime Tempus, Inc. at Vesta Court Documents

TPCIGA has been triggered to handle claims of the Texas-licensed Vesta Insurance companies with the issuance of the liquidation order for the companies in conjunction with the Order of Impairment issued by the Texas Insurance Commissioner. The Texas Select Insurance company was licensed to do business only in Texas and all claims against that company are expected to be directed to TPCIGA and not to any other guaranty associations.

INSURANCE POLICY & COVERAGE INFORMATION

As urged in the Texas Department of Insurance’s July 18 Press Release, policyholders should contact their agents as soon as possible to secure new insurance coverage. Click for information regarding Unearned Premium.

INFORMATION FOR AGENTS

Agents should carefully review Tex Ins Code art. 21.11-2 regarding their obligations with respect to unearned premium of an insolvent insurer. Agents should be aware that TPCIGA will calculate and refund unearned premium based on the financial information provided to it from the Vesta Companies, up to the statutory amount of $25,000, and any discrepancy between the agent’s calculation of unearned premium and that of Vesta and/or TPCIGA that results in the agent refunding more than the amount to be refunded by the TPCIGA will be the sole responsibility of the agent. Additional information for agents can be found at the TDI website.

NEW & PENDING LOSS CLAIMS INFORMATION

Policyholders should continue to notify the companies of claims under normal reporting procedures, including the reporting of new claims as well as lawsuits pertinent to in-force policies of the companies. The Special Deputy Receiver will be preparing existing loss claims files for shipment to the respective insurance guaranty associations for handling upon the entry of the expected liquidation order. Policyholders and claimants are requested to forgo contacting guaranty associations for the near future to allow sufficient time for the files to be transferred.

ADDITIONAL INFORMATION

Policyholders and claimants may also access other sections of this website for more information regarding claims handled by the association.

The Texas Department of Insurance (TDI) issued the following press releases prior to the liquidation order date with respect to the Vesta Companies:

TDI Press Release 07-18-2006 Re Petition to Liquidate

TDI Press Release 07-03-2006 Re Rehabilitation Order