Affirmative Insurance Company (Affirmative or AIC) was ordered into liquidation in the Circuit Court of Cook County, Illinois, on March 24.
Acting Illinois Insurance Director Anne Melissa Dowling filed a Complaint for Liquidation with a Finding of Insolvency against the insurer on March 1, declaring that Affirmative was insolvent by at least $31 million. Dowling has been named as liquidator and authorized to take control of the company.
Court filings show that while the insurer’s “statutory” home is Chicago, operationally and administratively, Affirmative is located in Addison, Texas. It specialized in non-standard auto insurance and sold policies in Alabama, California, Illinois, Indiana, Louisiana, Missouri and Texas.
According to the Texas Department of Insurance, all AIC policies will be cancelled as of April 24, 2016. The Texas Property and Casualty Insurance Guaranty Association will cover AIC claims in that state.
Upon the filing of the request for liquidation, a moratorium was placed on any further claim payments by Affirmative, including the return of unearned premium. Claim checks and other payments issued by the rehabilitator and mailed through Feb. 29, will be honored by AIC’s banks.
An order of rehabilitation was entered on Sept. 16, 2015. All rehabilitation proceedings are now terminated.
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