TPCIGA-Affirmative Ins Co

AFFIRMATIVE INSURANCE COMPANY

PLACED IN LIQUIDATION 3/24/2016

LIQUIDATION ORDER

Affirmative Insurance Company was found to be insolvent and placed into liquidation by the Circuit Court of Cook County, Illinois pursuant to an Order of Liquidation dated March 24, 2016. The liquidation will be administered by the Illinois Office of the Special Deputy Receiver (OSD).

The Liquidation Order permanently enjoins all persons, including policyholders and creditors, from instituting or further prosecuting any action against Affirmative except within the Illinois liquidation proceedings. In addition, the Texas Guaranty Act imposes an automatic six-month stay of proceedings in any case in which Affirmative was a party or was obligated to defend a party, effective until September 24, 2016.

IMPAIRMENT ORDER

The Texas Commissioner of Insurance issued an Order designating Affirmative as an impaired insurer effective March 24, 2016. The TPCIGA thus became obligated to undertake its statutory obligations to Texas policyholders and claimants 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 cancels all in-force insurance policies as soon as they expire or are replaced, but in no event later than 12:01 am on April 24, 2016, the thirty-first day following the effective date of the Order.

NEW & PENDING LOSS CLAIMS INFORMATION

All new claims should be reported to the Office of the Special Deputy Receiver, (312) 836-9500, www.osdchi.com.

The OSD will arrange for the transfer of loss claim files to TPCIGA for handling. Policyholders and claimants are requested to forgo contacting TPCIGA on non-hardship matters for 4-6 weeks, or until May 2016, to allow sufficient time for the file transfer and initial review. The TPCIGA will be unable to discuss the status of pending claims until the files have been transferred.

If you have insurance through another carrier, including uninsured motorists' coverage or health insurance, that insurance is now primary and you should contact your carrier to make a claim. All forms of other available insurance must be exhausted before TPCIGA can consider payment of your claim.

LAWSUITS & STAY OF LITIGATION

Any pending lawsuit in which Affirmative is obligated to defend a party is automatically stayed for a period of six months from the date of the Commissioner's order designating Affirmative as an impaired insurer, or until September 24, 2016, pursuant to TEX.INS.CODE §462.309. The statute of limitations is not tolled by the automatic stay.

PRIOR OR PENDING SETTLEMENTS

TPCIGA is not bound by a settlement or release entered into by Affirmative or its insureds, and such a settlement is not evidence of liability or damages against TPCIGA or an insured. TEX.INS.CODE §462.303. TPCIGA is obligated to review all claims to determine the extent to which they may be payable under the Guaranty Act.

UNEARNED PREMIUM

Claims for unearned premium will be processed as soon as possible after TPCIGA receives all necessary financial information from the OSD. It is not necessary to file a claim with TPCIGA for your unearned premium.

OSD CONTACT INFORMATION

Contact the Office of Special Deputy by calling (312) 836-9500 or visiting its web site at http://www.osdchi.com/open/affirmative.htm.

Information as of 03/28/2016

Affirmative 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.