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PrimeGuard Unable to Cover Outstanding Claims

August 21, 2006

PrimeGuard Insurance Co., is unable to cover outstanding claims after failing tens of thousands of extended vehicle service plans, reported Automotive News.

The Hawaii-based company, declared bankrupt by the court in December, was then liquidated in January.

It was estimated that PrimeGuard has $7 million in reserves and more than 40,000 parties could file claims against the company’s assets.

Hawaii’s First Circuit Court has approved a procedure creditors must use to file claims against PrimeGuard’s assets. The deadline for filing claims is November 30. The potential creditors include customers who bought service contracts, dealerships, repair facilities and vendors.

PrimeGuard marketing affiliates have been ordered to stop selling PrimeGuard contracts.

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