On March 1, 2016, Affirmative Insurance Co. was declared insolvent by at least $31 million by Acting Illinois Insurance Director Anne Melissa Dowling, who filed with the Illinois Supervising Court a Complaint for Liquidation with a Finding of Insolvency against the insurer.
A hearing on the complaint for liquidation is set for March 24.
The insurer operates in the non-standard auto insurance marketplace. As a result of the liquidation filing, a moratorium was placed on any further claim payments by the Affirmative, including the return of unearned premium. The moratorium was effective March 1.
Claim checks and other payments that were issued by the Rehabilitator and mailed through Feb. 29, 2016, will continue to be honored by AIC’s banks.
AIC currently has policies in-force in Alabama, California, Illinois, Indiana, Louisiana, Missouri and Texas, according to the Office of the Special Deputy receiver.
Upon entry of an Order of Liquidation, AIC’s in-force polices will be immediately cancelled, subject to the provision of thirty days of continuing coverage afforded under each state’s property/casualty guaranty fund act.
An order of rehabilitation was entered against Affirmative on Sept. 16, 2015, by the Circuit Court of Cook County, Illinois.
The Texas Department of Insurance posted a notice on its website stating that if the insurer is placed in court-ordered liquidation, the Texas Property and Casualty Insurance Guaranty Association will cover Affirmative’s claims in that state.