A Vermont Superior Court issued a liquidation order for Global Hawk Insurance Company Risk Retention Group on June 8, 2020. The Commissioner of the Vermont Department of Financial Regulation is named as Liquidator. Any proof of claims against Global Hawk must be filed by December 8, 2021.
As of April 30, 2020, court records indicate that Global Hawk was providing commercial auto insurance to 1,008 vehicles, of which 928 were garaged in California, 29 in Nevada, 26 in Washington, and a total of 15 in Arizona, Illinois and Kansas. The Vermont court determined that the company was so deeply insolvent that the vehicles were effectively uninsured.
As a risk retention group, the company is barred by federal statute from participating in the insurance guaranty fund system, according to court documents. It is possible that the RRG members will not have the financial resources to absorb any losses.
As background, Global Hawk Insurance Company is a risk retention group (RRG) founded in 2004 by a trucker. The firm specialized in the needs of privately held commercial/trucking businesses. Coverage offered included commercial auto liability and trucking liability in Arizona, California, Illinois, Kansas, Missouri, North Carolina, Oregon, Texas and Washington.
Affiliate company Global Century Insurance Brokers, Inc® specializes in writing commercial auto liability, general liability, physical damage, and motor truck cargo insurance in AZ, CA, DC, DE, HI, IN, KY, MI, MT, NC, NE, NJ, NM, NV, OK, OR, TX, UT, VA, WA.
The Global Hawk claim department took a very aggressive approach in its philosophy of paying what was owed and not overpaying claims simply to avoid a trial. Global Hawk litigators were described as having the proper trial experience to defend insureds. The firm’s independent adjusters also sought to conclude claims effectively and efficiently. The insurer emphasized litigation plans to promote an early strategy between defense counsel and the claims adjuster, with a focus on having panel counsel follow the firm’s litigation plans.
Click on the link for details at the Vermont Department of Financial Regulation website.
Click on this link to read the Global Hawk Petition for Liquidation.
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This article is provided for educational purposes only. It is not to be interpreted as legal advice or an opinion in regard to any topic discussed. The article should not be used as a substitute for legal advice from a licensed attorney in your state. Every situation is different and circumstances vary widely depending on the governing state law, policy provisions, and related considerations.