Highlands Insurance Company ("Highlands") was declared insolvent and placed into liquidation by the 53rd Judicial District Court of Travis County, Texas on October 29, 2021. The ORDER APPOINTING LIQUIDATOR AND PERMANENT INJUNCTION may be viewed here. The Liquidation Order triggers TPCIGA's statutory obligations to Texas policyholders and claimants under TEX. INS. CODE chapter 462, known as the Guaranty Act. The liquidation will be administered by a Special Deputy Receiver appointed by the Texas Commissioner of Insurance.
ASSUMPTION OF CERTAIN POLICIES AND LOSSES
On October 29, 2020, all workers' compensation claims arising under Highlands policies were assumed by Westport Insurance Corporation and its affiliates. Claims are handled by Sedgwick Claims Management Services, Inc. at (877) 925-
NEW AND PENDING CLAIMS INFORMATION
Any new losses should be reported to Prime Tempus, Inc., the Special Deputy Receiver ("SDR"), at (512) 894-
Both claimants and insureds are required to exhaust all other available insurance, including an insured's right to a defense, pursuant to TEX. INS. CODE §462.251. TPCIGA is not bound by any pre-
LAWSUITS AND STAY OF LITIGATION
Litigation against Highlands is permanently enjoined by the Liquidation Order. Any pending lawsuit in which Highlands is obligated to defend a party is automatically stayed for a period of six months, or until April 29, 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 Highlands 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.
NET WORTH EXCLUSION
Section 462.212 excludes from the scope of the Guaranty Act any claim under a Highlands' policy issued to an insured with a net worth in excess of $50 million on December 31, 2020. For purposes of the net worth exclusion, the insured's net worth includes the aggregate net worth of the insured and the insured's parent, subsidiary and affiliated companies computed on a consolidated basis. Please refer to the Guaranty Act for additional information.
SDR CONTACT INFORMATION
The Special Deputy Receiver handling Highlands' liquidation is Prime Tempus, Inc. Its website is www.sdrtx.com and it can be contacted at firstname.lastname@example.org or (512) 894-
Information as of 11/15/2021
Highlands Insurance Company
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