FOR IMMEDIATE RELEASE
NEW YORKS SHELBY CASUALTY POLICYHOLDERS LOSING COVERAGE
Superintendent of Insurance Howard Mills today announced more than 8,600 New Yorkers who have homeowners insurance policies with Shelby Casualty Insurance Company, a Shelby, Ohio-based subsidiary of The Vesta Insurance Group, are going to lose that coverage on Wednesday, Aug. 23, 2006.
"Shelby Casualty is canceling every one of its existing New York policies and will refund all monies that are owed to policyholders," Superintendent Mills stated. "The New York State Insurance Department recommends that policyholders shop around for the best coverage by first contacting the producer from whom the policy was purchased."
The Shelby Casualty Insurance Company is sending out letters to notify homeowners that their current policy is being canceled, and explaining how they can go about securing a premium refund, if eligible for one.The Vesta Insurance Groups operating subsidiaries conducted business in numerous U.S. states and had two New York-licensed property/casualty insurers, the Shelby Casualty Insurance Company and Vesta Fire Insurance Company. All of the premiums in New York, however, were written by the Shelby Casualty Insurance Company for homeowners policies.
Citing the deteriorating financial condition of The Vesta Insurance Group, the Texas Insurance Commissioner in his capacity as Rehabilitator of the Groups Texas-domiciled insurers, canceled late last month all of the Groups Texas policies effective Thursday, Aug. 24 at 12:01 a.m., CST. The Texas Insurance Commissioners decision set into motion the cancellation of The Vesta Insurance Groups 246,323 existing policies nationwide, a decision that was upheld earlier this week by a Texas court.
The Shelby Casualty Insurance Company has 8,676 in-force homeowners insurance policies in New York, according to New York State Insurance Department records. Most of Shelbys policyholders are in Nassau and Suffolk counties. Those who experience any difficulty collecting refunds on cancelled policies, or getting a claim paid, can file a complaint by writing to the New York State Insurance Department, Consumer Services Bureau, 25 Beaver Street, New York, NY 10004 or logging onto www.ins.state.ny.us and utilizing the Departments electronic complaint process. Those with questions can call the Insurance Department at 1-800-342-3736.