Office of the Special Deputy Receiver

Representing Andrew Boron, Director of Insurance, Illinois Department of Insurance
Patrick D. Hughes, Special Deputy Receiver & Chief Executive Officer

Valor Insurance Company

Welcome to the webpage for Valor Insurance Company.  On August 23, 2003, Valor Insurance Company was ordered into liquidation, and the Director of Insurance was affirmed as Receiver.  By Illinois law, the Director may appoint a Special Deputy Receiver to administer the receivership.  By power of attorney, Patrick D. Hughes is the Special Deputy Receiver to Director of Insurance Andrew Boron, and the Office of the Special Deputy Receiver handles the day-to-day administration of the liquidation proceedings under the direction of the Special Deputy, subject to the ultimate authority of the Director and to court supervision.  Here is additional information on Valor Insurance Company:
   
Liquidation Date: August 23, 2002
Claims Filing Deadline: February 23, 2004
Contingent Claims Filing Deadline August 23, 2004
   
Second Claim Filing Deadline: May 1, 2012
   
Docket Number: 02 CH 04056
  Click here to view the Valor Insurance Company docket and upcoming court dates maintained by the Clerk of the Supervising Court.
Related Documents and Links:  
Balance Sheets
Financial Statements and Independent Auditors' Report
Receivership Petitions and Orders
Statement of Changes in Cash and Invested Assets
Contact OSD Staff

Latest News:  
An order was entered by the court supervising the liquidation proceedings establishing a claims filing deadline of May 1, 2012 for purposes of participating in a second round of distribution of estate assets. Specific details of the claim filing procedures and deadlines are set forth in the Receivership Order
(Posted October 27, 2011)
   
   
 
   
Historical Data: Check the NAIC Global Receivership Information Database ("GRID") for  additional data on insurance companies in receivership.

On February 25, 2002, an Order of Conservation was entered against Valor Insurance Company following the Department of Insurance’s determination that Valor was insolvent by more than $15 million.

An Order of Liquidation was entered by the Circuit Court of Cook County, Illinois, against Valor on August 9, 2002, subject to a fourteen day stay until August 23, 2002. The Order of Liquidation was entered on the Director’s motion for Judgment on the Pleadings, which was granted by the Circuit Court on August 7, 2002 based upon a duly authorized Consent to Liquidation executed by Valor’s board of directors which the owner subsequently refused to honor. On August 14, 2002, Valor filed a Notice of Appeal of the Order of Liquidation.

An Agreed Order, which contains a Finding of Insolvency and waives all rights to appeal, was entered by the Circuit Court of Cook County, Illinois on March 13, 2002, and further requires Valor to dismiss with prejudice its pending appeal of the Court’s August 9, 2002, Order of Liquidation. The Appeal was dismissed on March 27, 2003. As of that date, the Liquidation Order and Finding of Insolvency became final.

The Department of Insurance had previously approved an arrangement for Affirmative Insurance Company to assume or reinsure all in-force business of Valor effective January 1, 2002. As such, Affirmative is responsible for policy claims which occurred on or after that date. Affirmative is an Illinois domestic carrier and member of the Vesta Insurance Group of Birmingham, AL, and is licensed in 25 states including Illinois and Indiana.

Valor is a wholly owned subsidiary of Gallant Insurance Company, in Liquidation, which in turn is wholly owned by J and P Holdings Incorporated, and a member of the Warrior Insurance Group of Bedford Park, Illinois. Valor was originally incorporated in December 1989 as the Unicorn Insurance Company. Its name was changed in 1992 to Hallberg Direct Insurance Company and to Valor in July 1995.

The company is licensed in the states of Illinois and Indiana, and primarily wrote non-standard passenger automobile liability and physical damage coverages.

The claim filing deadline was February 23, 2004. The deadline for liquidating timely-filed contingent claims was August 23, 2004. Early access distributions totaling $18,702,220 have been made to the Guaranty Fund for administrative expenses and claim benefits.

On March 24, 2011, the Liquidator filed a petition seeking approval of the payment of a 100% dividend on all claims allowed at priority levels (a) - (d). The petition is scheduled to be heard by the court supervising the liquidation proceedings on March 28, 2011 and, if approved, the distribution will be issued shortly thereafter.

On March 28, 2011, the Supervising Court approved the Liquidator's amended petition to distribute a 100% dividend on all timely-filed claims recommended for allowance by the Liquidator at priority levels (a), (b), (c), and (d) of the Illinois priority of distribution schedule.

Last updated October 2011

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