Home Value Insurance Co. Dissolved

The rehabilitation of Calif.-based Home Value Insurance Co. (HVIC) has ended and the corporation has been dissolved by order of the Franklin County, Ohio Court of Common Pleas, where the company was domiciled.

According to the motion filed Dec. 21, 2012, by court-appointed rehabilitator Mary Taylor, Ohio Superintendent of Insurance, all HVIC policies have been commuted and cancelled and check payments were issued to all policyholders.

The motion to terminate the rehabilitation of HVIC was granted on Dec. 27, 2012. The order states any funds received after the termination will be returned and no other claims against HVIC will be honored. Destruction of all pre-rehabilitation and post-rehabilitation company records began Dec. 30.

HVIC was ordered into rehabilitation by the Ohio court on Aug. 31, 2012, after regulators found it had failed to maintain the $5 million minimum capital and surplus required by Ohio statutes and was in a “hazardous” financial condition. A rehabilitation plan submitted by Taylor was approved on Nov. 16, 2012. All HVIC policies were terminated and policyholder checks distributed at that date.

The insurer sold policies covering a loss in home value if a homeowner sold for less than the home’s appraised value at the time it was insured. It began operating in 2009 but pulled back and reentered the insurance market in September 2011.

In addition to Ohio, HVIC sold 172 policies in Oklahoma and Georgia as of the date of the rehabilitation order, according to information on the Ohio Insurance Liquidator’s site. It was licensed to sell insurance in Arizona, Indiana, Louisiana, Oregon and Texas but did not issue policies in those states.