ReliaMax Dropped from Texas’ Eligible Surplus Lines List
Following its placement into liquidation by the South Dakota Division of Insurance in late June, the Texas Department of Insurance removed ReliaMax Surety Co. from the list of eligible surplus lines insurers in Texas, the Surplus Lines Stamping Office of Texas (SLTX) reported.
According to SLTX, ReliaMax is ineligible to write insurance in Texas, as of July 13, 2018. A South Dakota circuit court placed the company in liquidation proceedings on June 27, 2018, and as such, ReliaMax may not write any new business and will be liquidated. The company was found to be in “hazardous financial condition,” according to the order of liquidation. The South Dakota-based insurance company specialized in surety bonds covering student loan repayment to financial institutions throughout the U.S.
Due to the liquidation order, ReliaMax’s domestic license was rescinded. Under the Texas Insurance Code, surplus lines insurers in Texas are required to hold authorization to conduct business in their domiciliary states. ReliaMax no longer meets these requirements.