Financial Statements and Independent Auditors' Report
Receivership Petitions and Orders
Statement of Affairs
Statement of Changes in Cash and Invested Assets

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.

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

On December 13, 2012, the Circuit Court of Cook County, IL entered an order approving the issuance of a first distribution of 50% on all timely filed claims allowed at level (D). Subsequently, on January 15, 2013, the Circuit Court of Cook County, IL entered an order approving the issuance of a second, and final distribution 39.3377% on all timely filed claims allowed at level (D). The order also terminates the liquidation proceedings and closes the estate.