A Travis County court in Texas has placed Access Insurance Co. into liquidation in the week of March 12, just a few days after California ordered the insurance company to stop writing any new or renewal insurance business, The Insurance Insider reported.
The Texas court has also declared Access Insurance insolvent and froze any actions against the company's insureds for up to 90 days. Texas regulators authorized the Texas Property and Casualty Insurance Guaranty Association to process covered claims against the company's policies, all of which will expire within 30 days after March 13.
Under the court order, Access Insurance founder Michael McMenamin and other people related with the company can no longer take part in its business.
In January, the California Department of Insurance warned that Access Insurance could face conservation or liquidation proceedings after failing to maintain the required capital because of reserve deficiency. An Access Insurance memo suggested that the company was in capital infusion talks but the outcome and status of the discussions are unclear, according to the report.
A lawyer in Austin representing Access Insurance did not respond to The Insurance Insider's request for comment. Robert Barbarowicz, a lawyer for Access Insurance in Los Angeles, told the news outlet that he could not comment on anything related to the insurance company.
