Texas Shuts Down Stop-Loss Company

By Staff Writer

October 09, 2002 at 08:00 PM

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NU Online News Service, Oct. 9, 1:03 p.m. – Texas Insurance Commissioner Jose Montemayor has shut down Britannia International Life & Casualty Ltd., Houston, by issuing an emergency cease-and-desist order.

The order also applies to Lyndal Ray Stocks, a Houston insurance agent. Stocks is Britannia's operator, officials say.

Texas officials have accused Britannia of providing stop-loss coverage for questionable health plans that cover more than 800 employers in 15 states.

Stop-loss coverage protects self-funded health plans against large, unexpected claims costs.

The plans backed by Britannia participated in the United Employers Voluntary Employees Beneficiary Association or American Benefit Plans, an unauthorized health plan that the department shut down in March, officials say.

Britannia has continued to provide stop-loss coverage for employers in Texas since March, officials say.

Britannia could not immediately be reached for comment.

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