Tennessee Commissioner of Commerce and Insurance Paula A. Flowers filed court petitions seeking the liquidation of three related Tennessee-chartered insurance reciprocal companies that insure thousands of lawyers, doctors, counselors and medical facilities nationwide.
The Department of Commerce and Insurance announced that in three separate filings Flowers asked the Davidson County Chancery Court to convert the existing receiverships of American National Lawyers Insurance Reciprocal (ANLIR), Doctors Insurance Reciprocal (DIR) and The Reciprocal Alliance (TRA) into liquidation proceedings. Flowers has concluded that the three are insolvent and can’t be rehabilitated, and that their continued operation would be detrimental to insureds, creditors and the public.
The three reciprocals were operated by a Richmond, Va.-based company, The Reciprocal Group (TRG), and have no employees or infrastructure of their own. The were substantially reinsured by Reciprocal of America (ROA), also located in Virginia. Virginia officials have found both ROA and TRG to be insolvent and have moved to liquidate those firms.
ANLIR, DIR and TRA sold malpractice coverage to doctors, lawyers, school counselors and medical facilities. At the time they entered state receivership, ANLIR had 14,642 subscribers, DIR had 3,690 and TRA had 17,393. Subscribers can be a single person or entities such as a law firm, physician office or professional association.
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