Home Warranty Corporation, Home Owners Warranty
Corporation and HOW Insurance Company
(collectively, the "HOW Companies"), In Receivership

Important Claim Filing Information (revised November 25, 2008)

The Following Information Concerns The Receivership Affairs Of HOW Insurance Company, A Risk Retention Group, Home Owners Warranty Corporation, And Home Warranty Corporation (Collectively, The "HOW Companies"). Alfred W. Gross, Virginia Commissioner Of Insurance, As Deputy Receiver Of The HOW Companies (The "Deputy Receiver") Reserves The Right To Provide Updated And New Informaiton That May Affect The Interests Of The HOW Companies. NOTHING HEREIN CONSTITUTES A BINDING LEGAL STATEMENT BY THE RECEIVER, THE DEPUTY RECEIVER, OR THEIR REPRESENTATIVES. NOR ARE THE STATEMENTS CONTAINED HEREIN INTENDED AS COMPLETE LEGAL DESCRIPTIONS OF THE EVENTS OR MATTERS TO WHICH THEY RELATE. THE MATERIAL PROVIDED HEREIN IS OFFERED ONLY FOR THE PURPOSE OF GENERAL INFORMATION. FOR FULL LEGAL INFORMATION, INTERESTED PARTIES SHOULD REVIEW THE SOURCE DOCUMENTS AND APPLICABLE LEGAL AUTHORITIES.

Proof Of Claim ("POC") Form And Instructions

A claimant must file a claim using the provided  POC Form or a substantially similar form with the same required information, and following the POC instructions by the Bar Date of January 12, 2009 unless exempt (please see below).

Counsel Not Required

While claimants are free to engage counsel or advisers of their choice, they are not required to be represented by counsel in order to file a claim.

Exempt Claims

The following claims do not require the filing of a POC:

  1. Claims by builders for a share of the residual assets of the HOW Companies. Such distributions will be calculated automatically by the Deputy Receiver’s representatives. The Deputy Receiver will notify all builders eligible for a distribution; therefore, an eligible builder need not take any action to receive a distribution. Moreover, a builder can determine its eligibility/percentage simply by sending a letter request to the Deputy Receiver. It is not necessary that a builder engage counsel to receive such distributions, though it may do so at its own expense.

  2. Claims that have previously been approved, resolved, or paid by the Deputy Receiver ("approved" or "resolved" claims are those approved in writing by the Deputy Receiver, settled pursuant to a written settlement agreement between the Deputy Receiver and the claimant, or adjudicated by a final and binding determination of the State Corporation Commission of the Commonwealth of Virginia, Circuit Court of Virginia, Supreme Court of Virginia, or other court of competent jurisdiction)

  3. Proper administrative expenses claims.

  4. Claims by builders for loss reserve deposits or release of letters of credit. Such distributions will be calculated automatically by the Deputy Receiver’s representatives; therefore, an eligible builder need not take any action to receive a distribution. Moreover, a builder can write a letter to the Deputy Receiver with any question regarding such distributions. It is not necessary that a builder engage counsel to receive such distributions, and such representation will not, in and of itself, though it may do so at its own expense.