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,…
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?