Eagle Star/Highlands Settlement Does Not Violate Texas Law

AUSTIN, Texas - A settlement of reinsurance obligations reached between the receiver of Highlands Insurance Co. and Eagle Star Insurance Company Ltd. does not violate Texas insurance law and is in the best interest of the Highlands estate, a Texas state appeals court has affirmed. Ace Property & Casualty Insurance Co. v. Prime Tempus Inc., No. 03-06-00236 (Texas App. Ct., Austin).

On Aug. 26, the Texas Court of Appeals, Houston Division, rejected Ace Property & Casualty Insurance Co.'s assertion that the settlement, proposed by Highlands' receiver, Prime Tempus Inc., creates an impermissible subclass of creditors and deprives it of its …