Oklahoma Insurance Commissioner Kim Holland announced that she has filed an application with the Oklahoma County District Court to be appointed receiver for Top Flight Insurance Company, an auto insurance carrier. The action is being taken because Commissioner Holland recently learned that the company may be in financial trouble.
Examiners who were sent by Commissioner Holland to investigate the company’s books and records have found that Top Flight appears to be insolvent by approximately $3.5 million. The company has been ordered to write no new policies in Oklahoma.
Top Flight’s annual reports indicate that its business was carried out and premiums were received in Oklahoma City by a managing general agent, Source General Agency Inc. Commissioner Holland is also asking the court to place Source General Agency under her control.
“As soon as I learned of the possibility that Top Flight was impaired, we acted quickly to protect our policyholders in Oklahoma,” Holland said. “I do not expect this action to cause a major disruption for most policyholders. Even if the company does not have funds available to pay claims, the Oklahoma Property and Casualty Insurance Guaranty Fund will financially back the coverage promised by the policies.”
The Oklahoma Insurance Department currently has examiners onsite at Top Flight’s office in Arlington, Texas, and at Source General’s office in Oklahoma City. Both companies’ records are being reviewed to determine the extent of the financial shortfall. The Commissioner has appointed Mark Tharp as assistant receiver to guide the processing of claims by policyholders and make recommendations regarding any litigation that might be available to recover funds on behalf of the company.
Policyholders or creditors with questions about the operations in receivership of Top Flight Insurance should contact the Consumer Assistance Division of the Insurance Department at (405) 521-2991.
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