TIP/PIA Texas announced it has set up a special Web page providing information on homeowner markets, in an effort to help with possible solutions in light of the recent problems with Texas Select. This is not an endorsement of any company.
On July 18 the Texas insurance department filed papers to liquidate Texas Select Lloyd’s and its parent company, Vesta Fire, also a Texas company, a subsidiary of Vesta Insurance Group of Birmingham, Ala.
The Vesta group was hard hit by losses in the 2005 hurricane season and was downgraded to “marginal” by A.M. Best earlier in 2006.
Texas Select is the fourth largest homeowner’s insurer in the state with 154,000 customers. Policyholders must find another insurer by August 23; in the meantime they will be covered by the state’s guaranty fund. The insurance department had tried to find a buyer for the two companies, but the poor financial condition of the Vesta group made that task difficult. Vesta group companies in Florida and Hawaii had already been placed under the control of regulators.
The Texas Commissioner of Insurance, acting as Rehabilitator of the Texas-domiciled insurers in the Vesta Insurance Group, made the decision to stop writing new policies, discontinue renewing policies, and to cancel all existing policies. Texas Select is the only insurer in the group with active Texas policyholders.
TDI says all homeowners insurance policies written by Texas Select will be canceled, effective Aug. 24.
PIA Texas has set up a special Web page with resources in an effort to assist agents.
Topics Texas Agencies New Markets Homeowners
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