Probe into failure of Progressive, Oxford and Insurance of the Pacific

Pago Pago, AMERICAN SAMOA — The ASG Insurance Commissioner has launched an investigation into the sudden departure of Progressive Insurance from the territory.

The investigation was launched after several Progressive customers sought the assistance of the insurance officer regarding their policies.

Insurance Commissioner, Ben Te’o appeared before the House Government Operations committee last week to discuss the issue at hand.

Te’o said that his office has received some complaints from members of the public regarding Progressive Insurance and they’re working together with the Office of the Attorney General on this matter.

Te’o said his office has sent out an insurance closure notice to radio, Samoa News and KVZK-TV requesting all individuals and businesses that have insurance policies with the Progressive Pago Ltd, Oxford of the Pacific Ltd, and Insurance of the Pacific to come in and fill out a complaint/ claim form.

When asked by the committee about his office’s immediate action while their investigation is still ongoing, Te’o said that they are currently working with attorneys from the AG’s office for a “court injunction” to “freeze and eventually seize the ANZ Bank assets” of Progressive Pago Ltd, Oxford Ltd and Insurance of the Pacific.

And furthermore to use the seized assets (under court supervision) to distribute the assets to former customers based on claim amounts, or to use the seized assets to help the individuals and businesses gain re-insurance with another local insurance carrier.

Te’o explained that his office and the office of the Attorney General searched for information regarding Progressive Apia, Progressive Pago Pago, Insurance Company of the Pacific and Oxford Pacific.

A copy of a Nov. 19, 2021 letter from the Assistant Attorney General Robert Morris II to Gov. Lemanu P. Mauga regarding the status of this matter was received by the committee before the hearing.

Based on the letter, there are two different Progressive Insurance Companies: Progressive Apia and Progressive Pago Pago.

On Sept. 9, 2021, Progressive Apia began the process of undergoing voluntary liquidation. The liquidator for Progressive Apia is David Petterson from Apia.

Also in September of last year, Progressive Pago Pago abruptly closed their doors and fired their manager, Greg Duffy. Attorney Roy J.D.  Hall, Jr. formerly represented Progressive Pago Pago. At present, Hall cannot confirm that he represents Progressive Pago Pago.

(Samoa News points out that Hall was recently named ASG’s Assistance Attorney General.)

Murray Drake, who is also an attorney in the Independent State of Samoa, is the director for both Progressive Apia and Progressive Pago Pago.

Progressive Pago Pago, Insurance Company of the Pacific and Oxford closed their doors abruptly in September 2021. All three companies were run by the same manager, Greg Duffy and operated out of the same building. Murray Drake is a director for all three companies.

All employees were paid through Oxford Pacific Inc, management, which operated as the insurance broker.

In regards to outstanding claims, Progressive Pago Pago has approximately four long-term worker’s compensation claims and two pending vehicle claims that must be addressed.

Oxford Pacific Insurance management has outstanding payroll checks for their employees and there are additional complaints filed with the Insurance Commissioner, including unearned premiums that need to be refunded.

In October of last year, the ASG Insurance Commissioner issued cease and desist letters to the three companies for alleged violations of the insurance code. The cease and desist letters’ allegations include failure to provide proof of a bond and failure to submit compliance affidavits.

The three companies did not respond to the three letters.

Currently, the AG’s office doe not know the financial status of the companies and it also doesn’t know if the three insurance companies will continue doing business in American Samoa.

If the companies chose to shut down and Drake is not cooperative in fulfilling their outstanding claims (including setting up a plan to pay the long-term workers comp claims, the two pending vehicle claims, the employees, and the unearned premiums), then the AG’s office will file in court for the Insurance Commissioner to take control of the companies and resolve the issues.

In November of last year, several customers of Progressive Insurance were looking for help in dealing with the company after their office at Fagatogo Square closed suddenly.

Notices were posted on the office door saying the office was closed but there was no phone number, email or address to contact regarding customers’ insurance matters with the company.

The closure of the local office occurred right when Progressive Company in Samoa filed for bankruptcy.