Previous Entries
  • Aug. 3, 2006
  • July 27, 2006
  • July 25, 2006
  • July 20, 2006

Time Running Out for Vesta Shelby Claimants
(Aug. 9, 2007) — The court overseeing the receivership of the Vesta Insurance Group has given claimants three months to submit their claims. In a notice published in the Aug. 6 edition of Wall Street Journal, the Texas Commissioner of Insurance announced that the receivership court has set a deadline of 11:59 p.m., C.S.T, on Nov. 30 for the submission of claims against subsidiary members of the Vesta Group. Shelby Casualty Insurance Co., a member of the group, wrote thousands of homeowners insurance policies in New York. The Texas court placed the companies in permanent receivership in 2006, and the companies subsequently canceled all in-force policies.

According to the notice, all claims must be postmarked or delivered to The Vesta Receiverships on or before the deadline. All claims must include a proof of claim form. Information, including the proof of claim form, is available at www.sdrtxpoc.com, by mail from The Vesta Receiverships, P.O. Box 1133, Dripping Springs, TX 78620-1133, or by calling (888) 313-5685.

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Policyholders Due to Lose Coverage
(August 3, 2006) —  Superintendent of Insurance Howard Mills today announced more than 8,600 New Yorkers who have homeowners’ insurance policies with Shelby Casualty Insurance Co., a subidiary of Vesta Insurance Group, are going to lose that coverage on Aug. 23.

"Shelby Casualty is canceling every one of its existing New York policies and will refund all monies that are owed to policyholders," Superintendent Mills stated. "The New York State Insurance Department recommends that policyholders shop around for the best coverage by first contacting the producer from whom the policy was purchased."

Shelby is sending out letters to notify homeowners that their current policy is being canceled, and explaining how they can go about securing a premium refund, if eligible for one.

Vesta to Close Syracuse-area Office

IIABNY has learned Vesta Insurance Group, which has been placed under receivership by the Texas Department of Insurance, is closing its Shelby Insurance office in Syracuse on Aug. 4. Correspondence should be directed to the company's headquarters in Birmingham, Ala.

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New Info on Vesta/Shelby Receivership is Posted

(July 27, 2006) —  An agent frequently asked questions summary has been added to the information IIABNY has posted on the pending liquidation of Vesta Insurance Group, corporate parent of Shelby Fire Insurance Co. Previously, the association posted advice and other information for Shelby agents from IIABNY's legal counsel and the New York State Insurance Department.

Additionally, The E&O Report has addressed issues of special relevance to the events leading up to the Vesta/Shelby receivership. See the March 2006, November 2002 and March 2002 issues. Please note a member login is required to access The E&O Report.

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NYSID Responds; E&O Counsel Advises Vesta Agents
(July 25, 2006) —   With no public comment from Vesta Fire Insurance Co. regarding its recent liquidation proceedings, Tim Dodge, IIABNY’s director of research and external communications, has contacted the New York State Insurance Department, in an attempt to clarify the fate of New York policies. Vesta has announced cancellation of outstanding policies effective Aug. 23.

NYSID responded to Dodge's inquiry, and IIABNY's E&O counsel weighed in, too. Here's what they had to say.

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Carrier Crisis: Vesta Goes Into Liquidation
(July 20, 2006) — The Texas Department of Insurance was unable to breathe financial life back into the Vesta Fire Insurance Company, including subsidiary Shelby Casualty Insurance Company, and has begun liquidation proceedings against the troubled carrier. A June 28 agreed order of rehabilitation between the department and carrier only prolonged the inevitable.

According to A.M. Best, Shelby Casualty had almost $11 million in direct written premium in New York in 2004. IIABNY will maintain vigilance as the situation warrants.  

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