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The Missouri Department of Insurance announced the conclusion of the legal cases of two insurance companies that went into receivership due to insolvency.

A Cole County judge ordered Transit Casualty Co. into receivership in November 1985. It is Missouri’s second-longest receivership.

Despite the insolvency, Department Director John M. Huff says the department was able to secure enough funds from the company’s assets to pay 87 percent of policyholder claims. The remaining 13 percent was paid by insurance guaranty associations, which protect policyholders when their insurance company becomes insolvent.

Cole County Circuit Judge Patricia Joyce on Dec. 20 granted the department’s request to close the receivership, after assurance from the department that all claims and liabilities have been satisfied.

International Financial Services Life Insurance Co. was ordered into receivership in May 1999. Huff says the department was able to secure enough funds from the company’s assets to pay 100 percent of policyholder claims, with no payments being necessary from guaranty associations.

Judge Joyce on Dec. 21 granted the department’s request to close the receivership.

Source: Missouri Department of Insurance, Financial Institutions and Professional Registration (DIFP)

Topics Missouri