Insolvency leads to Go Insurance Company liquidation
In 2023, the Texas Dept. of Insurance issued Go a cease and desist after receiving over 50 complaints about the company's practices.
An Oklahoma District Court approved an order of liquidation for Go Insurance Company, also known as Peachtree Insurance Company, on March 8, 2024, as a result of the company’s financial insolvency. The Oklahoma Receivership Office reports that all policies with Go Insurance were terminated and all coverage canceled effective no later than April 8.
Go Insurance has been on the radar of state insurance regulators for a while. In August 2023, Texas Commissioner of Insurance Cassie Brown served an emergency cease and desist order on Peachtree Casualty Insurance Company, which also did business under the names Go Insurance Co. and Go Car Insurance, after receiving 50 complaints about their claims handling from repair facilities, claimants and attorneys.
The order claimed that Go/Peachtree presented an “immediate danger to the public” if it did not cease and desist from unlawful conduct, including:
- Not being timely in the handling and paying of claims.
- Conduct that is fraudulent or involves engaging in unfair and deceptive trade practices involving claims handling and payments.
- Failure to maintain the minimum capital and surplus required to operate as an insurance company in Texas.
- Failing to file a required financial statement under Texas code.
- Failing to attempt in good faith to effectuate a prompt, fair and equitable settlement of a claim when the insurer’s liability has become reasonably clear.
- Failing to affirm or deny coverage within a reasonable time.
- Failing to timely pay claims when it had received all information reasonably requested and required to pay the claims.
- Failure to timely respond to a written request for information.
Texas law requires insurance companies in the state to keep at least $2.5 million in capital stock and $2.5 million in surplus. However, at the time of the cease and desist, the Texas Department of Insurance (TDI) reported Go/Peachtree had $2.5 million in capital stock, but its surplus was $250,515 in the red.
What does this liquidation entail?
When it is determined an insurance company isn’t able to pay its claimants and creditors, a court can order the company into either a receivership for rehabilitation or into liquidation. The District Court of Oklahoma placed Go in receivership for rehabilitation in December 2023, then proceeded to order liquidation in March.
This liquidation means that Go Insurance is no longer in business, as it was declared statutorily insolvent.
The TDI has set up a web page where former Go Insurance customers can find information and answers to questions about things like open claims and policy refunds that can be found here.