Galaxy Insurance Company was incorporated under the laws of New York on September 3, 1980, with the title Galaxy Reinsurance Company and began business on November 28, 1980. It adopted the name Galaxy Insurance Company on February 17, 1987.
Starting December 16, 1986, all outstanding shares were held by Randjill Group Ltd., a New York based holding company which was formed as an investment vehicle for the purchase of Galaxy by a group of individual investors and Acceleration Life Insurance Company. Subsequently, since July 30, 1991, 100% of Randjill's common stock was owned by ACCEL International Corporation, the owner of Acceleration Life Insurance Company. It had paid-up capital of $8,250,000 consisting of 250 common shares of $10,000 par value each and $5,750,000 of contributed surplus. All authorized shares were outstanding.
On August 15, 1994, the New York Department of Insurance notified Galaxy that it had 30 days to cure its impaired financial condition. A third party's plan to purchase this company was evaluated by the New York Department of Insurance and on September 30, 1994, the parties were advised by letter that the plan would not eliminate the financial impairment. Thereafter, Galaxy's board submitted its consent to the liquidation order.
Galaxy was licensed in District of Columbia, Idaho, Indiana, Kansas, Michigan, Nebraska, Nevada, New York, South Carolina, Texas and Utah. It was authorized for reinsurance in Maryland, Pennsylvania, West Virginia and Wyoming but at time of liquidation 100% of premium was written only in New York State. Galaxy issued policies to provide coverage for commercial property, multiple peril and general liability risks.