If you read the emergency cease-and-desist order from the TDI, there are a lot of things going on. As in, with all my years of being an attorney, I wouldn’t offer to defend them.
I am somewhat familiar with the legacy entity from decades ago. That got me curious, so I googled. Looks like the legacy entity was sold to a runoff specialist in late 2018. The current dot com bought the legacy company in 2022, I presume as a shell company so they could access licensed lines by state. Like you implied, seems like at best they may not have brought enough people on board that actually understand the P&C regulatory environment. At worst,…
2018 runoff acquisition:
According to Texas law, insurance companies like Go/Peachtree are required to maintain a minimum of $2.5 million in capital stock and an additional $2.5 million in surplus funds. The Order alleges that Go/Peachtree falls short of these financial requirements.
That sounds so bad lol. Doesn’t that mean they are literally one claim away from being insolvent?
My guess is that they are probably mostly selling minimum statutory limits
Their Facebook page is full of comments from angry customers threatening to sue them.
Not when you don’t pay claims.
A famously profitable segment
It probably is if you don’t pay the claims
So perhaps Go should stop.
Claim development at this place must be a hoot.
“IBNR? We don’t need no stinkin’ IBNR.”
Then again, it’s really operating more like “rules? We don’t follow no stinkin’ rules.”
Sounds like they can’t keep the lights on much longer
Usually inability to pay claims = cash flow issue
Inability to produce timely and accurate financial reports = employees see the writing on the wall and are leaving in droves
DOIs hate this one trick!
Arr, the Texas Insurance Code is more like guidelines than actual rules.