Oklahoma Prepares to Liquidate Pegasus Insurance Co.

A judge in the District Court of Oklahoma County in mid-August issued an order of liquidation with a finding of insolvency for workers’ compensation provider Pegasus Insurance Co. Inc.

Oklahoma Insurance Commissioner Kim Holland initiated proceedings to place Pegasus into rehabilitation earlier this year. The state’s insurance department subsequently found the insurer to be “insolvent and a hazard to policyholders, the creditors of Pegasus and the general public.” Pegasus did not contest the assertion.

The Oklahoma Office of Receivership, which is making preparations to liquidate the insurer, has posted the following statement on its Web site regarding the liquidation process: