Missouri Department of Insurance Closes Two Receiverships

The Missouri Department of Insurance announced the conclusion of the legal cases of two insurance companies that went into receivership due to insolvency.

A Cole County judge ordered Transit Casualty Co. into receivership in November 1985. It is Missouri’s second-longest receivership. Despite the insolvency, Director John M. Huff says the department secured enough funds from the company’s assets to pay 87 percent of policyholder claims. The remaining 13 percent was paid by insurance guaranty associations.

Cole County Circuit Judge Patricia Joyce on Dec. 20, 2012, granted the department’s request to close the receivership, after assurance that all claims and liabilities had been satisfied.

International Financial Services Life Insurance Co. was ordered into receivership in May 1999.

Huff says the department was able to secure enough funds from the company’s assets to pay 100 percent of policyholder claims, with no payments necessary from guaranty associations.

Judge Joyce on Dec. 21, 2012 granted the department’s request to close the receivership.