Oklahoma to Place Pegasus Insurance into Rehabilitation

A district court judge has authorized Oklahoma Insurance Commissioner Kim Holland to place Pegasus Insurance Company into rehabilitation.

Pegasus specializes in workers’ compensation for professional employer organizations (PEOs), or employee leasing entities, according to information posted on the company’s Web site.

The court’s order indicates that Pegasus’s owner, Wayne Stark, has consented to the appointment of the Oklahoma Department of Insurance and Commissioner Holland as receiver for rehabilitation of the company.

The department asserts, and Pegasus does not contest the assertion, that the company “is insolvent and a hazard to policyholders, the creditors of Pegasus and the general public,” according to the court order posted on the insurance department’s Web site.

Commissioner Holland was named receiver and directed to “take possession of the property of Pegasus Insurance Company and conduct its business until further order of the Court,” the June 21 order signed by District Court Judge Vick Robertson states.