TPCIGA-Capson Physicians Ins Co

LIQUIDATION ORDER

Capson Physicians Insurance Company was found to be insolvent and placed into liquidation by the 250th District Court of Travis County, Texas on June 28, 2019. See Liquidation Order. The Texas Commissioner of Insurance has appointed Cantilo & Bennett, L.L.P. to act as Special Deputy Receiver (SDR) for Capson.

The Liquidation Order permanently enjoins all persons, including policyholders and creditors, from instituting or further prosecuting any action against Capson except within the Texas liquidation proceedings. In addition, the Texas Guaranty Act imposes an automatic six-month stay of proceedings in any case in which Capson was a party or was obligated to defend a party, effective until December 28, 2019.

IMPAIRMENT ORDER

The Texas Commissioner of Insurance issued an Order designating Capson as an impaired insurer on June 28, 2019. TPCIGA's statutory obligations to Texas policyholders and claimants under TEX.INS.CODE chapter 462 became effective 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 the thirtieth day after the date of the Order, which is July 28, 2019.

NEW & PENDING LOSS CLAIMS INFORMATION

All new claims should be reported to Capson via email to claims@capson.com.

The SDR will arrange for the transfer of loss claim files to TPCIGA and other state guaranty associations for handling. TPCIGA will only handle claims involving Texas policyholders or claimants; residents of other states will be directed to their state's guaranty association. Texas policyholders and claimants are requested to forgo contacting TPCIGA on non-hardship matters for 4-6 weeks 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 any potentially applicable 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 must be exhausted before TPCIGA can consider payment of your claim.

LAWSUITS AND STAY OF LITIGATION

Any pending lawsuit in which Capson is obligated to defend a party is automatically stayed for a period of six months from the date of the Commissioner's order, or until December 28, 2019, 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 Capson 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

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

SDR CONTACT INFORMATION

The Special Deputy Receiver (SDR) for Capson is Cantilo & Bennett, L.L.P. Contact the SDR by phone at

(512) 478-6000, fax (512) 404-6550, email to claims@capson.com, or visit the SDR's web site at www.capsonsdr.com.

Information as of 07/01/2019

Capson Physicians 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.