New Jersey-based The MIIX Group, Inc., a provider of medical professional liability insurance, has agreed to an Order with the New Jersey Department of Banking and Insurance that sets forth the framework for the regulatory monitoring of MIIX Insurance Company as it continues to non-renew and runoff its remaining business.
In May 2002, as part of a reorganization plan, the company agreed with the DOBI to run-off the business of its predecessor, and to establish a successor company, subject to certain restrictions agreed upon with the DOBI.
The company said that the “Order is consistent with a previous letter agreement of the parties whereby MIIX agreed to certain limitations on operations. The limitations, among other things, require Departmental approval for payment of dividends by the company’s insurance subsidiary, and for lending arrangements, investments and inter-company arrangements outside of the normal course of business, and require the company to periodically provide the Department with information relating to its operations and finances. Under applicable New Jersey insurance law, the Department has broad authority to expand the scope of the monitoring. No assurances can be given that it will not do so.”
Chairman and CEO Patricia Costante noted, “The company will continue to conduct its business as usual. We expect that the Department may conduct audits of MIIX’s operations to ensure the continued existence of a solvent runoff. We have appreciated the Department’s support as the company continues to seek to reduce costs and, where possible, ongoing exposures to loss.”
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