Prime Travel Protection, a seller of travel insurance based in Arvada, Colo., announced at its website that it has initiated an "orderly liquidation of services," adding that inquiries "will be handled by legal counsel and/or court appointed trustee."
In a letter to travel agents, Jerry Watson, president, said that for Prime Travel Protection, "the claims liabilities were double what I had anticipated and it has come to the point that we can no longer generate the funds necessary to continue these payments."
He said Prime Travel Protection is looking at a Chapter 7 bankruptcy or self-liquidation with a trust receivership, and claims would be handled through the bankruptcy court or the trust. He said funds to settle claims would come from liquidating assets.
The Denver Better Business Bureau gave the company an F rating for several reasons having to do with the number of complaints filed against it, the number of complaints that remain unresolved and its "failure to have a required competency license."
The BBB said that, as of Jan. 12, "Jerry Watson, owner, is not licensed in the state of Colorado as an insurance agency or to produce insurance."
Travel Weekly has learned the company also is the subject of investigations in the Colorado and Florida insurance departments.
