American Country Insurance Company and American Service Insurance Company, two related companies under the Atlas Group umbrella, were declared insolvent and placed into liquidation by an Illinois court on August 11, 2020. The AGREED ORDER OF LIQUIDATION WITH A FINDING OF INSOLVENCY may be viewed here. The liquidation order triggered the Texas Property and Casualty Insurance Guaranty Association's ("TPCIGA") statutory obligations to the insurers' Texas policyholders and claimants under TEX. INS. CODE chapter 462, known as the Guaranty Act. The liquidation will be administered by the Illinois Office of Special Deputy Receiver ("OSD").
The liquidation order permanently enjoins all persons, including policyholders and creditors, from instituting or further prosecuting any action against American Country Insurance Company or American Service Insurance Company (collectively, "ACIC/ASIC") except within the liquidation proceedings. In addition, the Texas Guaranty Act imposes an automatic six-
CANCELLATION OF POLICIES
The liquidation order cancels all in-
NEW & PENDING LOSS CLAIMS INFORMATION
All new claims should continue to be reported to Anchor Management Group at (847) 472-
TPCIGA is working with the Illinois Office of Special Deputy Receiver to arrange for transfer of the Texas claims to TPCIGA for handling. Policyholders and claimants are requested to forgo contacting TPCIGA on non-
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.
If your vehicle needs repairs or is presently in the repair shop, and your claim is against an insured of ACIC/ASIC, you should proceed under your own collision or uninsured motorist coverage and seek reimbursement of your deductible from TPCIGA. If you are an insured with a property damage claim and your car is undriveable and/or in the shop, we will attempt to prioritize your claim.
LAWSUITS AND STAY OF LITIGATION
Litigation against American Country Insurance Company and American Service Insurance Company is permanently enjoined by the liquidation order. Any pending lawsuit in which the insurers are obligated to defend a party is automatically stayed for a period of six months from the date of the liquidation order, or until February 11, 2021, 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 ACIC/ASIC 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.
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 Receiver by calling (312) 836-
Information as of 08/14/2020
American Country Ins Co / American Service Ins Co