The New York Liquidation Bureau said it has completed all necessary steps to bring to a close the ancillary receivership in New York of American Eagle Insurance Company, a Texas-based property/casualty firm declared insolvent in 1997.
American Eagle had been a regional insurance carrier involved in aviation and other transportation, construction and marine underwriting. The Insurance Commissioner of the State of Texas, who became Receiver and liquidator of American Eagle when it was declared insolvent, appointed the New York State Superintendent of Insurance as Ancillary Receiver in 1998 and subsequently directed the Liquidation Bureau to take possession of the company’s property and business in the Empire State.
The Liquidation Bureau reviewed claims by New York policyholders and certified payments of $1.558 million to 31 claimants. Eligible claims up to $1 million are covered by New York State’s Property/Casualty Insurance Security Fund, which has a claim in American Eagle’s liquidation proceeding in Texas for reimbursement of the payments it made on claims.
According to the Texas Receiver’s Web site, American Eagle’s insolvency triggered the protection of 45 state insurance guaranty funds, including the New York Security Fund, which have paid over $45 million in covered claims for American Eagle’s policyholders. Early access distributions by the estate to guaranty funds paying covered claims currently exceed $25 million.
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