TDI issues emergency cease and desist order against Go/Peachtree
The Texas Commissioner of Insurance has issued an emergency cease and desist order against Peachtree Casualty Insurance Company, also known as Go Insurance Company.
- Go/Peachtree poses an immediate danger to the public.
- The company is financially unstable, failing to file timely financial statements.
- Go/Peachtree is not handling or paying claims in a timely or appropriate manner.
- Their actions are causing imminent, significant, and irreparable harm to policyholders.
- The company is engaged in fraudulent or deceptive practices.
- Go/Peachtree has violated various Texas insurance laws, including those related to financial stability, claim handling, and more.
Commissioner Cassie Brown has ordered Go/Peachtree to immediately cease several activities in the state of Texas. Specifically, the company is ordered to stop:
- Operating or advertising under any trade names in Texas that have not been approved by the Texas Department of Insurance (TDI).
- Selling any insurance products in Texas under unapproved trade names.
As background, Peachtree is a foreign general stock company which can conduct business in 36 states and DC. In July 2022, Go Maps, Inc. acquired Peachtree. Shortly before the acquisition, the company changed its state of domicile from Florida to Oklahoma. In Texas, Go/Peachtree’s authority is limited to auto physical damage and auto liability. The company only writes personal car insurance policies.
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.
Additionally, the company failed to file its financial results for the Q2 ’23 by the August 15 deadline. In a videoconference held on August 22, Go/Peachtree informed TDI that it would take an additional two to three weeks for the company to file its financial statements.
This year, TDI has received a total of 50 complaints about Go/Peachtree. These complaints have come from various parties including claimants, attorneys, and repair facilities. Notably, the frequency of complaints has escalated in recent months. Out of the 50 complaints, 40 were filed since the beginning of June. Even more concerning is that 21 of those 40 complaints were lodged in a very short period, between August 1 and August 22. “Specifically, the complaints allege that Go/Peachtree delays claims decisions and payments for multiple months, fails to promptly communicate with the claimant, and even requests information not relevant to claims handling.”