New York Closes Receivership of Insolvent Texas Insurer

The New York Liquidation Bureau said it has completed all necessary steps to bring to a close the ancillary receivership in New York of American Eagle Insurance Company, a Texas-based property/casualty firm declared insolvent in 1997.

American Eagle had been a regional insurance carrier involved in aviation and other transportation, construction and marine underwriting. The Texas Insurance Commissioner, who became receiver and liquidator of American Eagle when it was declared insolvent, appointed the New York State Superintendent of Insurance as ancillary receiver in 1998 and directed the Liquidation Bureau to take possession of the company’s property and business in New York.

The bureau reviewed claims by New York policyholders and certified payments of $1.558 million to 31 claimants. Eligible claims up to $1 million are covered by New York’s Property/Casualty Insurance Security Fund, which has a claim in American Eagle’s liquidation proceeding in Texas for reimbursement of the payments.

American Eagle’s insolvency triggered the protection of 45 state insurance guaranty funds, which have paid more than $45 million in covered claims.

Topics Texas Carriers New York