Hallmark Financial Services, Inc. (HFS) is engaged, with its wholly owned subsidiaries, in the sale of property and casualty insurance products. Its business involves marketing, underwriting and premium financing of non-standard personal automobile insurance in Texas; commercial insurance in Texas, New Mexico, Idaho, Oregon and Washington; third-party claims administration and other insurance-related services. HFS pursues its business activities through integrated insurance groups handling non-standard personal automobile insurance (the personal lines group) and commercial insurance (the commercial lines group). The members of the personal lines group are American Hallmark Insurance Company of Texas, American Hallmark General Agency, Inc., American Hallmark Agencies, Hallmark Finance Corporation and Hallmark Claims Service, Inc. The members of the commercial lines group are Millers General Agency, Financial and Actuarial Resources, Inc. and Effective Litigation Management, Inc.