On August 12, 2010, a Consent Order of Liquidation with a finding of insolvency was entered in the District Court of Oklahoma against Pegasus Insurance Company ("The Order"). The Order gives the Oklahoma Insurance Commissioner, Kim Holland, as Liquidator, full power, possession and control over the assets, business and affairs of Pegasus Insurance Company, including all of the property, contracts, rights of action and books and records.
Pursuant to Oklahoma law, the Pegasus insurance policies will be cancelled at 12:01 a.m. on the thirty-first day following the date of the Order; or upon expiration of any policy if the expiration date is within thirty days from the date of the Order, or upon the date the insured or policyholder effects cancellation. Further all policies shall cancel/terminate upon non-payment of premium pursuant to policy provisions.
For the protection of policyholders, the Order of Liquidation activates the state guaranty associations in the states where Pegasus is licensed to do business. During the interim period prior to the state guaranty associations taking over the claim payment process, the Liquidator will continue to make indemnity claim payments to policyholders as they become due.