West Virginia Insurance Guaranty Association

General Information
Re:  Shelby/Vesta Insurance Companies, in Liquidation

 

On August 1, 2006, the District Court of Travis County Texas entered a finding that Shelby Casualty Insurance Company, Shelby Insurance Company, and Vesta Fire Insurance Company were insolvent and ordered the companies into liquidation. This is similar to a filing of bankruptcy. As a result, these companies will not be paying their claims at any time in the near future.

 

The West Virginia Insurance Guaranty Association (WVIGA) is a non-profit association created by West Virginia law (§ 33-26) for the purpose of paying insurance policy claims of West Virginia insureds when an insurance company is placed into liquidation (we are somewhat comparable to the FDIC which provides coverage for your deposits if your bank becomes insolvent.  The Liquidation order entered against the Shelby/Vesta Companies triggered our obligations under West Virginia law.

 

Subject to the limitations and conditions of the guaranty act, we will be paying claims on Shelby/Vesta policies as soon as we receive the claim files and policy information from the Liquidator (the Texas Department of Insurance), and we have had an opportunity to review the files.  When we receive your file, an adjuster will be assigned to your claim, and the adjuster will contact you.  The other insurance companies operating in West Virginia provide the funds we use to pay the claims of insolvent insurers.

 

Because of your insurer’s liquidation, there will likely be some delays in the handling of your claim.  Please have patience with us, however, since we must have time to review your claim and gather the necessary documents from the Liquidator.  It may take up to four weeks or longer before we get your claim file.

 

The WVIGA pays only those claims resulting from insurance policy obligations, including unearned premium refunds.  We do not pay general creditors claims.  Each claim that we pay is subject to a $100 statutory deductible, in addition to any applicable insurance policy deductible.  Unearned premium claims are also subject to a $100 deductible

 

Any other available insurance covering any claim must be exhausted before we pay.  Anyone with a claim for bodily injuries from an auto accident against a Shelby/Vesta insured must first submit the claim to their own auto insurance carrier under the Uninsured Motorists coverage, if such coverage is available.  Your insurance agent, company representative, or attorney can assist you with this process. 

 

If you have a claim for damage to your vehicle caused by an insured of Shelby/Vesta, you should first submit the claim to your own auto insurer under your Collision coverage.  We will consider payment to you of any deductible under your collision coverage (less the $100 statutory deductible) if we determine that the Shelby/Vesta insured was at fault.  All other forms of insurance, including health insurance, must be exhausted before we can make any payments.

 

As soon as we have had an opportunity to review your file, we will be in touch with you to gather any additional information we may need, or we will simply issue a check to you for your claim if all other information is complete.

 

We request that you not call our office unless absolutely necessary, since such calls will simply tie up our personnel and slow down the processing of claims. We will respond to all claims as soon as possible.

 

For more complete information about the WVIGA, visit the FAQ section of our website.

 

Thank you for your patience and cooperation!