Texas Department of Insurance places several insurers in receivership
On March 9, 2005, States General Life Insurance Company was determined to be in hazardous financial condition and placed in permanent receivership by the 126th Judicial District Court, Travis County, Texas.
A Texas court had previously cancelled all American Benefits Plan (ABP) coverage on the date of receivership and set a claim filing deadline of October 31, 2002. The court subsequently approved a late claim filing period in 2003.
Both filing deadlines have expired and the Texas Special Deputy Receiver (SDR) assigned to ABP is no longer accepting claims. All timely filed claims have been processed according to court authorized procedures to determine allowable claims amounts. The Texas Department of Insurance has announced that there will not be enough assets to pay approved claims in their entirety. However, the SDR has recovered sufficient assets to make a partial distribution to approved claimants. The SDR'S Application For Authority For Interim Distribution was filed with the receivership court on November 12, 2004 seeking authority to pay approved claims. The court has approved the application and the first distribution, equal to 20% of the approved claim amounts, was made in December 2004.
The Texas Department of Insurance has also taken action against several other health insurers gaining receivership over SAI Plus and Employers Mutual LLC. These health plans were the other two unlicensed companies that had received cease-and-desist orders at the same time as ABP.