NO. D-1-GV THE STATE OF TEXAS IN THE DISTRICT COURT OF VS. TRAVIS COUNTY, TEXAS

Transcription

1 NO. D-1-GV Filed 12 December 17 A10:54 Amalia Rodriguez-Mendoza District Clerk Travis District D-1-GV THE STATE OF TEXAS IN THE DISTRICT COURT OF VS. TRAVIS COUNTY, TEXAS UNIVERSAL INSURANCE EXCHANGE and UNIVERSAL PARATRANSIT INSURANCE SERVICE, CORP. 345TH JUDICIAL DISTRICT SPECIAL DEPUTY RECEIVER'S QUARTERLY FINANCIAL REPORT AND SUMMARY STATEMENT OF EXPENSES FOR THE QUARTER ENDING NOVEMBER 30, 2012 TO THE HONORABLE JUDGE OF THIS COURT: COMES NOW, the Commissioner of Insurance for the State of Texas as Rehabilitator of Universal Insurance Exchange and Universal Paratransit Insurance Service, Corp., pursuant to TEX. INS. CODE ANN (g) and (a), and presents to this Court its Quarterly Financial Report and Summary Statement of Expenses for the Quarter Ending November 30, The Financial Report covers the period of September 1, 2012 through November 30, The reports were prepared using the information available to the Rehabilitator and his accounting subcontractor at the time the reports were prepared. The reports were prepared using statutory accounting practices prescribed by the Department of Insurance except as noted in the reports. The Rehabilitator anticipates that changes to reported items may occur as additional information regarding the business operations is obtained. Respectfully submitted, BRIAN E. RIEWE, P.C. P.O. Box 776 Smithville, Texas Telephone: 512/ Facsimile: 512/ Brian E. Riewe State Bar No By: Brian E. Riewe Attorneys for the Rehabilitator

2 CERTIFICATE OF SERVICE I hereby certify that a true and correct copy of the foregoing document has been served on all interested parties in accordance with the Texas Rules of Civil Procedure and TEX. INS. CODE ANN (d) this 17th day of December Mr. Tom Collins, Special Master by serving his Docket Clerk, Ms. Jean Sustaita Texas Department of Insurance 333 Guadalupe, Tower III, 5th Fl., MC-305-1D Austin, Texas jean.sustaita@tdi.state.tx.us Ms. Kimberly Hammer Ms. Jemmie Russell Mr. Terry Smith Texas Department of Insurance P.O. Box Austin, Texas kimberly.hammer@tdi.state.tx.us jemmie.russell@tdi.state.tx.us terry.smith@tdi.state.tx.us Ms. Linda Shaunessy, Asst. Attorney General Attorney General's Office P.O. Box Austin, Texas linda.shaunessy@oag.state.tx.us Ms. Sharon Williams United States Department of Justice P.O. Box 875, Ben Franklin Station Washington, DC sharon.williams@usdoj.gov Mr. Brian E. Riewe Brian E. Riewe, P.C. P.O. Box 776 Smithville, Texas briewe@riewelaw.com Mr. Robert Nunnally Wisener * Nunnally * Gold, L.L.P. 245 Cedar Sage Dr., Suite 240 Garland, Texas gurdonark@aol.com Mr. Bogdan Rentea (Atty for Kourosh A. Hemyari) Rentea & Associates 1002 Rio Grande Street Austin, Texas brentea@rentealaw.com Mr. Jon E. Arsenault, General Counsel Connecticut Insurance Department P.O. Box 816 Hartford Connecticut jon.arsenault@po.state.ct.us Ms. Belinda Miller, Deputy General Counsel Florida Office of Insurance Regulation 200 East Gaines Street Tallahassee, Florida belinda.miller@fldfs.com Ms. Arlene Knighten, Supervising Attorney Legal Services Division Louisiana Department of Insurance Post Office Box Baton Rouge, Louisiana aknighten@ldi.state.la.us Mr. Mark Haire, Director of Legal Division Mississippi Insurance Department 1001 Woolfolk State Office Building 501 North West St Jackson, Mississippi mark.haire@mid.state.ms.us Mr. David Woolsey, Supervisor Department of Banking and Insurance P. O. Box 325 Trenton, New Jersey david.woolsey@dobi.state.nj.us Mr. Todd Dewey 2111 Skylark Drive Arlington, Texas goodguy222001@yahoo.com U:\3400\Cert of Serv - reports.doc Page 1

3 Mr. John Werner Reaud, Morgan & Quinn, L.L.P. P.O. Box Beaumont, Texas Mr. Dan Lair 2 Springcrest Court Allen, Texas dlair@sbcglobal.net Mr. Edward M. Lavin (Atty-Bill Hall Jr. Trucking) Attorney at Law 8918 Tesoro Dr. #418 San Antonio, Texas elavin@satx.rr.com Mr. Harry Sivley, Jr. (Rep. for Richard W. O'Dom) Regulatory Technologies, Inc. 645 Hembree Parkway, Suite A Roswell, GA hlsregulatoryconsulting@gmail.com Ms. Amber Walker Texas Property & Casualty Insurance Guaranty Association 9120 Burnet Road Austin, Texas awalker@tpciga.org Mr. Mark A. Weitz (Atty-Annecy Investments) Weitz Morgan PLLC 100 Congress Ave., Suite 2000 Austin, Texas mweitz@weitzmorgan.com Mr. Don S. Nixon Paradise Intermediaries, Inc. 705 W. Avenue B., Suite 312 Garland, Texas donnixon@paradiseintermediaries.com Mr. Stan Broome (Atty-Fletcher, Polete, et al) Broome Law Firm, PLLC 105 Decker Court, Suite 850 Irving, Texas sbroome@broomelegal.com Brian E. Riewe Brian E. Riewe briewe@riewelaw.com U:\3400\Cert of Serv - reports.doc Page 2

4 Statement of Net Assets For the Period Ending Line Cash 1 Cash Cash - Unrestricted 1,878,295 APF Funds (Loan proceeds) Investments 2 Short-Tem Investments 3 Bonds 4 Stocks - Preferred & Common 5 Investments in Subsidiaries, Controlled or Affiliated Entities 6 Mortgage Loans 7 Real Estate 8 Policy Loans 9 Other Invested Assets Restricted Assets 10 Statutory Deposits 11 Funds held by or deposited with Reinsured Companies 12 Restricted - Other Reinsurance Receivable 13 Reinsurance Recoverables on Paid Losses & LAE (net of allowance) 14 Reinsurance Recoverables on Unpaid Losses & LAE (net of allowance) 15 Reinsurance Recoverables on UEP & Contingent Commissions Other Receivables 16 Salvage & Subrogation Recoveries 17 Premiums Due from Agents & Policyholders 18 Receivable from Parents, Subsidiaries & Affiliates 19 Receivable from Guaranty Associations - Early Access Payments 20 Other Receivables Large Cab Deductible Recoverable 111,446 Allowance for Uncollectible Amounts (111,446) Federal Income Tax Recoverable-UPI 1,837 Other Assets 21 FF&E 22 Other Assets Total Assets 1,880,132

5 Statement of Net Assets For the Period Ending Ref No. Ref No NOTES Universal Insurance Exchange (UIE), is a reciprocal exchange. Universal Paratransit Insurance Services, Corp (UPI) is the attorney in fact for UIE. On January 26, 2006, both companies were placed into receivership under an Agreed Order Appointing Rehabilitor and Permanent Injunction by the Texas Department of Insurance in the 345th Judicial District Court of Travis County, Texas. The financial statements of UIE and UPI are presented on a combined basis. Represents amounts due from former large cab policyholders under deductible agreements that are in excess of security deposit amounts received. These amounts are fully reserved as collectiblity of these amounts are uncertain. Federal Income Tax recoverable is a refund amount from prior years tax returns that has been applied towards the current year's income tax return for Universal Paratransit Insurance Services, Corp.

6 Changes in Net Assets for the Quarter Ending Line 08/31/12 Change Cash 1 Cash Cash - Unrestricted 2,025,717 1,878,295 (147,422) APF Funds (Loan proceeds) 0 0 Investments 2 Short-Tem Investments Bonds Stocks - Preferred & Common Investments in Subsidiaries, Controlled or Affiliated Entities Mortgage Loans Real Estate Policy Loans Other Invested Assets 0 0 Restricted Assets 10 Statutory Deposits Funds held by or deposited with Reinsured Companies Restricted - Other 0 0 Reinsurance Receivable 13 Reinsurance Recoverables on Paid Losses & LAE (net of allowance) Reinsurance Recoverables on Unpaid Losses & LAE (net of allowance) Reinsurance Recoverables on UEP & Contingent Commissions 0 0 Other Receivables 16 Salvage & Subrogation Recoveries Premiums Due from Agents & Policyholders Receivable from Parents, Subsidiaries & Affiliates Receivable from Guaranty Associations - Early Access Payments Other Receivables 0 0 Large Cab Deductible Recoverable 517, ,446 (405,760) Allowance for Uncollectible Amounts (17,222) (111,446) Federal Income Tax Recoverable-UPI 1,837 1,837 0 Other Assets 21 FF&E Other Assets 0 0 Total Assets 2,527,538 1,880,132 (553,182) Universal Insurance Exchange (UIE), is a reciprocal exchange. Universal Paratransit Insurance Services, Corp (UPI) is the attorney in fact for UIE. On January 26, 2006, both companies were placed into receivership under an Agreed Order Appointing Rehabilitor and Permanent Injunction by the Texas Department of Insurance in the 345th Judicial District Court of Travis County, Texas. The financial statements of UIE and UPI are presented on a combined basis.

7 Statement of Net Liabilities For Period Ending Line 1 Secured Claims 2 APF Loan 3 Special Deposit Claims Administrative Claims - Class 1 4 Administrative Claims - State/Receiver Special Deputy Receiver, Subcontractors Fees & Expenses 237,467 Liquidation Oversight 1,593 Special Master's Fees 5 Administrative Claims - Guaranty Assns Administrative Expense Paid Administrative Expense Reserves 6 LAE - Guaranty Assns LAE Paid LAE Reserves Policy Claims - Class 2 7 Loss Claims - Guaranty Assns Loss Claims Paid Loss Claims Reserves 8 Loss Claims - Other Other Loss Claims Paid Other Loss Claims Reserves 9 LAE - Other 10 Unearned & Advance Premium Claims - GA 11 Unearned & Advance Premium Claims - Other Other Liabilities 12 Loss Claims Reserve 285, Loss Adjustment Expense Reserve 28, Claims Deductible and Premium Deposit Payable 177, Commissions Payable-Outstanding Checks from Closed Account 3, Payable to RLO Conservation Department 0 17 Surplus Debenture Note 635, Interest Payable-Surplus Debenture Note 19,317 Total Liabilities 1,387, Total Equity/(Deficit) Excess (Deficiency) of Assets over Liabilities 492,845 Total Liabilities & Equity 1,880,132 Universal Insurance Exchange (UIE), is a reciprocal exchange. Universal Paratransit Insurance Services, Corp (UPI) is the attorney in fact for UIE. On January 26, 2006, both companies were placed into receivership under an Agreed Order Appointing Rehabilitor and Permanent Injunction by the Texas Department of Insurance in the 345th Judicial District Court of Travis County, Texas. The financial statements of UIE and UPI are presented on a combined basis.

8 Statement of Net Liabilities For Period Ending Ref. No NOTES p p unreported claims. Represents reserves for loss adjustment expenses required to adjudicate 14 Represents deductible escrow deposits on account for former policyhoders. Represents outstanding checks from closed commissions account that requires research and 15 possible escheatment Represents promissory note to the shareholder of the attorney in fact pursuant to a settlement agreement bearing interest of 2% per annum to be paid at closing of the receivership if funds are available. This note is subordinate to all other claimants of the receivership. Represents accrued interest on surplus debenture note accrued at 2% per annum. See 17 above.

9 Changes in Net Liabilities for the Quarter Ending Line 08/31/12 Change 1 Secured Claims APF Loan Special Deposit Claims 0 0 Administrative Claims - Class 1 4 Administrative Claims - State/Receiver 0 0 Special Deputy Receiver, Subcontractors Fees & Expenses 42, , ,752 Liquidation Oversight 1,593 1,593 Special Master's Fees Administrative Claims - Guaranty Assns 0 0 Administrative Expense Paid 0 0 Administrative Expense Reserves LAE - Guaranty Assns 0 0 LAE Paid 0 0 LAE Reserves 0 0 Policy Claims - Class 2 7 Loss Claims - Guaranty Assns 0 0 Loss Claims Paid 0 0 Loss Claims Reserves Loss Claims - Other 0 0 Other Loss Claims Paid 0 0 Other Loss Claims Reserves LAE - Other Unearned & Advance Premium Claims - GA Unearned & Advance Premium Claims - Other 0 0 Other Liabilities 12 Loss Claims Reserve 297, ,000 (12,280) 13 Loss Adjustment Expense Reserve 10,981 28,052 17, Claims Deductible and Premium Deposit Payable 733, ,689 (556,036) 15 Commissions Payable-Outstanding Checks from Closed Account 3,169 3, Payable to RLO Conservation Department 178,276 0 (178,276) 17 Surplus Debenture Note 635, , Interest Payable-Surplus Debenture Note 16,142 19,317 3,175 Total Liabilities 1,917,288 1,387,287 (530,001) 23 Total Equity/(Deficit) Excess (Deficiency) of Assets over Liabilities 610, ,845 (117,405) Total Liabilities & Equity 2,527,538 1,880,132 (647,406) Universal Insurance Exchange (UIE), is a reciprocal exchange. Universal Paratransit Insurance Services, Corp (UPI) is the attorney in fact for UIE. On January 26, 2006, both companies were placed into receivership under an Agreed Order Appointing Rehabilitor and Permanent Injunction by the Texas Department of Insurance in the 345th Judicial District Court of Travis County, Texas. The financial statements of UIE and UPI are presented on a combined basis.

10 Sources & Uses of Cash For Period Ending Qtr Ending Nov-12 Income Premium Receipts 0 Agents' Balances Received 0 Reinsurance Recoveries 0 Salvage & Subrogation Recoveries 0 Affiliates Recovery 0 Settlement/Litigation Recovery 0 Other Receipts 0 Sale of Real & Personal Property 0 Investment Sales/Receipts 0 Other Asset Receipts 0 Total Receipts from Assets/Receivables 0 Interest & Dividend Receipts, EA Interest 0 Cash Deposit Interest 721 Total Cash Receipts 721 Disbursements SDR Fees & Expenses 51,598 Subcontractor Legal Fees & Expenses 36,653 Subcontractor Other Fees & Expenses 11,458 Non-Subcontractor Fees & Expenses 2,092 Other Expenses 1,767 RLO Fees & Expenses 6,234 Total Disbursements for Operations 109,802 Loss Claims & LAE Expense Payments 3,000 Early Access Payments - GA 0 Claims Deductible Deposit Refunds 35,341 Total Cash Distributions 38,341 Total Cash Disbursements & Distributions 148,143 APF Loan Proceeds (Repayment) 0 Net Increase(Decrease) in Cash (147,422) Cash at Beginning of Period 2,025,717 Cash at End of Period 1,878,295 Universal Insurance Exchange (UIE), is a reciprocal exchange. Universal Paratransit Insurance Services, Corp (UPI) is the attorney in fact for UIE. On January 26, 2006, both companies were placed into receivership under an Agreed Order Appointing Rehabilitor and Permanent Injunction by the Texas Department of Insurance in the 345th Judicial District Court of Travis County, Texas. The financial statements of UIE and UPI are presented on a combined basis.