The Texas Department of Insurance issued a request for bids for a special deputy receiver to handle business related to Dallas-based workers’ compensation carrier Colonial Casualty Insurance Company. Colonial Casualty was recently placed into receivership by a Travis County court, which found the company to be insolvent and in a “hazardous financial condition,” according to the Travis County district attorney’s office.
A TDI spokesman said the company had a book of business that “got away from them” and Colonial Casualty ended up owing more for claims than it could pay for. Compounding the company’s troubles are the alleged actions of Walter Edward Neuls and Deidra Ellen Neuls, company directors who have been charged with misapplying fiduciary property of over $1,000,000.
Once TDI closes the bid process for the special deputy receiver, the interview process is expected to take about two to three weeks. The state’s property/casualty guaranty fund is currently handling an estimated $8 million in unpaid claims filed with Colonial Casualty.
Topics Casualty
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