Auto insurer Affirmative Insurance Co. was declared insolvent by about $31 million on March 1, 2016 by Acting Illinois Insurance Director Anne Melissa Dowling; a hearing on the complaint for liquidation is set for this Thursday, March 24. Dowling filed with the Illinois Supervising Court a Complaint for Liquidation with a Finding of Insolvency against Affirmative.
An order of rehabilitation was entered against the insurer on September 16, 2015 by the Circuit Court of Cook County, Illinois.
Following the liquidation filing, a moratorium was placed on any further claim payments by the insurer, which includes the return of the company’s unearned premiums. The moratorium was effective March 1.
Those claim checks and other payments issued by the Rehabilitator and mailed by February 29 will still be honored by Affirmative’s banks.
The Office of the Special Deputy receiver stated that Affirmative currently has policies in-force across the country, in states like Alabama, California, Illinois, Indiana, Louisiana, Missouri and Texas.
Once an Order of Liquidation is issued, Affirmative’s in-force polices will all be immediately cancelled. Each policy will be subject to its respective state’s provision of thirty days of continuing coverage.
