A group accused by the state Department of Commerce and Insurance of conducting an unauthorized insurance business said it is the victim and shouldn’t have its assets liquidated.
Attorney Nader Baydoun told a Davidson County chancellor Tuesday his clients Smart Data Solutions, its owner Bart S. Posey Sr. and others named in a petition filed last month are willing to step aside and allow a third party to administer insurance claims from policies bought through SDS as benefits to its member clients.
Baydoun said respondents SDS and American Trade Association, also owned by Posey, merely sold access to insurance benefits that were to be administered by another respondent, Serve America Assurance, which failed to properly pay out claims by policyholders.
Commerce and Insurance Commissioner Leslie A. Newman in her petition claims none of the companies were authorized to operate in Tennessee as an insurer, and they should enter receivership to liquidate their assets and pay out on claims.
Baydoun said liquidation wasn’t necessary as a third-party firm from Texas, which he couldn’t immediately name, was ready to step in and administer the unpaid claims. But Chancellor Ellen Hobbs Lyle said the only difference in liquidating and not is that the companies would cease to exist afterward.
Also named in the petition are Posey’s wife, Angie Posey, director of ATA; Obed Kirkpatrick Sr., president of ATA; Linda Kirkpatrick, ATA secretary; Richard H. Bachman, vice president of ATA; Kristy Wright of ATA; William M. Worthy II, former ATA president; and Colin Youell, purported president or director of SAA.
The Kirkpatricks and Wright were dismissed from the petition at a hearing on Tuesday, during which Lyle said she expects to issue an order next week.