Vesta Fire and Subsidiaries Headed for Liquidation in Texas

July 19, 2006

  • July 20, 2006 at 10:16 am
    Chisum Whorton says:
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    EASY SOLUTION FOR TEXAS SELECTS CLIENTS!

    No Restricted Areas

    The Woodlands, TX â€â€Ŕâ€â€Ŕ The Woodlands Financial Group and TWFG General Agency announced today that they have entered into an agreement with Lincoln General Insurance Company to provide an easy solution for prior Texas Select clients through their TWFG Preferred homeowners insurance policy.

    Announced earlier in the week, all homeowner insurance policies of the San Antonio-based Texas Select will be cancelled in late August, according to the Texas Department of Insurance. TDI has had the company in receivership for two weeks, but could not find a buyer to take over the 154,000 Texas policies.

    TWFG has been working feverously to find a simple solution for all current Texas Select Clients that will be without coverage after August 23rd. TWFG will accept applications for coverage for all current Texas Select clients with many of the normal restrictions waived. TWFG has filed with TDI for the same rates and policy form as previously approved for use by Texas Select and is expecting approval in the very near future. Programming is underway for easy quoting and issuance of policies for all clients. While the entire state of Texas is open for business, Tier 1 will be written X-wind and Tier 2 will have minimum windstorm deductibles of 2%. All other areas will be eligible for 1% or higher deductibles.

    Lincoln General has specialized in the insurance industry since 1977. Lincoln became part of the Kingsway Financial Services Group (NYSE-KFS) in 1998 and has grown to become the largest company in the group with gross written premium in excess of $1 billion in 2005.

    The A.M. Best Company, the largest and most experienced independent insurance analyst, rates Lincoln General A- (Excellent) for its financial strength and claims payment ability. The complete Press Release and the Rating Supplement are available here:

    AM Best Press Release
    Rating Supplement
    About The Woodlands Financial Group

    TWFG is a regional Insurance and Financial services company offering personal and business insurance, life & health insurance, financial planning, and more through more than 750 offices in Texas. In 2005 TWFG through its combined network accounted for over $87 million in written premiums in force. In the past three years TWFG has seen growth of over 200% annually. TWFG currently has over 60 “branch” offices owned and operated by TWFG with an additional 700+ “affiliate” offices contractually operating with TWFG.

    http://www.twfgga.com

    #########

    All product and company names herein may be trademarks of their respective owners.

    Contact information:

    THE WOODLANDS FINANCIAL GROUP

    TWFG GENERAL AGENCY

    TWFG INSURANCE SERVICES

    1201 Lake Woodlands Dr., Ste 4020

    The Woodlands, TX 77380

    866-367-3424

    Email: gordy@twfg.net

    http://www.twfg.net or http://www.twfgga.com

  • July 21, 2006 at 8:45 am
    L.D. Chapman says:
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    I hope you are right, Miles. I have a claim (strangely enough, on June 28th).

  • July 21, 2006 at 3:32 am
    Miles says:
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    Spoke with Bond Holder Rep. who off the record predicted an 11th Hour Buy out of all Vesta\’s Book of Policies.

  • July 23, 2006 at 8:14 am
    John C. says:
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    If anyone knows of any additional information, please post here. Specifically need to know about Vesta in New Jersey. Will the New Jersey DOBI let Vesta cancel all their policies in August? or force them to withdraw orderly over a one year period? Vesta is a big insurer in NJ for homeowners insurance policies. Could create a lot of disruption in New Jersey.

  • July 23, 2006 at 11:28 am
    Lyell Chapman says:
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    Don\’t hold your breath! I spoke with one of Shelby Casualty\’s (subsidiary of Vesta) adjusters on the 20th. He advised \’they\’ told the employees to report for work on Monday (the 24th), but not to expect to finish out the week. Vesta is supposed to be out of business — period — by August 23rd. My agent advised they will be issuing notices of cancellation effective August 23, 2006. This is supposed to apply to Vesta, et al.

  • July 24, 2006 at 12:07 pm
    Nancy says:
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    We have two pending claims in Connecticut. I spoke with the Shelby claims dept on Friday. Unless there is a last minute buy out, Shelby is gone as of 8/23/06 for all agents. All claims will be taken over by the State\’s Guaranty Funds. I was told many people didn\’t show up to work on Friday at Shelby. Good luck!! My other companies are helping us with what we have left with Shelby, ie, don\’t need downpayments, don\’t need signatures. One marketing rep is coming here to help us quote and activate.

  • July 24, 2006 at 3:10 am
    BJT says:
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    Turner General Agency, Inc. is also doing what they can to help out those agents affected by Texas Select\’s rehabilitation. Plenty of aggregate capacity throughout the State of Texas. All A-Rated Carriers. If you are in need of a homeowners market, please feel free to call us at: 972-290-7200 or toll free at: 1-888-443-7932.

  • July 25, 2006 at 10:46 am
    Nancy says:
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    The court put a continuance on this case for another week.

  • July 25, 2006 at 12:12 pm
    Lyell Chapman says:
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    Well…doesn\’t this just add insult to injury? Nothing like being competely at the mercy of a bunch of pinheads, bureaucrats, and lawyers. As this goes along, I think a jab in the eye with a sharp stick would be more pleasant.

  • July 25, 2006 at 12:22 pm
    Nancy says:
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    Yeah, the employee I spoke with said they feel like they are living in pergatory. What a rotten situation!



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