TDI SHUTS DOWN MCIC

Medical Community Insurance Co. (MCIC) of Houston, a physician-owned company that specialized in major medical insurance for small employers in Texas, has been placed in temporary receivership. Judge John Dietz of the 353rd District Court in Austin signed a temporary restraining order and appointed Insurance Commissioner Jose Montemayor as temporary receiver of MCIC. The company did not contest the receivership. MCIC, incorporated in November 1997, operated only in Texas. The company primarily wrote group policies for employers with two to 50 employees, providing health coverage for approximately 10,000 people. MCIC collected $11.9 million in premiums in 1999. Staff of Texas Department of Insurance TDI and the Texas Life, Accident, Health and Hospital Service Guaranty Association negotiated an assumption of MCIC’s policies by Heritage National Insurance Co. of Tulsa from September 1, 2000, forward.

Topics Texas