A Texas district court judge has issued an order of liquidation of Access Insurance Company, an auto insurer incorporated in Texas but headquartered in Atlanta, after the Texas Insurance Department found the insurer unable to pay off its debts.
The company, which was founded in 1994, has license to do business in 22 states, including California, Pennsylvania and South Carolina.
According to the California Insurance Department, the insurer’s unaudited 2017 preliminary statutory income statement reflected a negative $27.6 million policyholder surplus as of December 31, 2017, and its unaudited 2018 preliminary statutory income statement reported that its policyholder surplus was a negative $29 million as of January 31, 2018. Additionally, the insurer neglected to file its required yearly statutory statement.
Only two states out of the 22 have reported on how many policyholders in their respective states will be affected.
Pennsylvania Insurance Department released a statement citing the insurer has 42,785 policies in the states. South Carolina Department of Insurance director Ray Farmer said the insurer has approximately 15,500 private passenger auto insurance policies, in a statement from the state’s insurance department.
Access policyholders will have until April 12 to find new coverage.