The Ohio Department of Insurance has revoked the licenses of two troubled insurance companies: Imperial Casualty and Indemnity Co. of Oklahoma City, Okla., and Atlantic Mutual Insurance Co. (AMIC) of New York, N.Y.
In March 2010, the District Court of Oklahoma County, Okla., placed workers’ compensation insurer Imperial Casualty into receivership. In May 2010, Imperial was placed into liquidation in Oklahoma.
Ohio insurance law states that the license of a company that is subject to liquidation or dissolution proceedings undertaken by another state may be revoked. Ohio invalidated Imperial Casualty’s license effective May 7. Maryland also recently revoked Imperial Casualty’s license in that state.
The Ohio Insurance Department reported that AMIC had a negative capital and surplus of $25,106,505 as of Dec. 31, 2009, according to the company’s annual financial statement.
Ohio insurance law requires insurance companies that have authority to write commercial lines of business, like AMIC, to maintain a minimum capital and surplus of $5 million to do business in the state of Ohio. It also allows for a company’s license to be revoked for failing to do so.
Arksansas Insurance Commissioner Jay Bradford revoked AMIC’s license in that state earlier this year.
AMIC has not written any new business in Ohio since November 2007 and there are no current policyholders in Ohio. However, Ohio policyholders that have a claim under a policy with AMIC can still file claims with the company.
AMIC’s license was suspended on March 15, 2010 and revoked effective May 3, 2010.
Source: Ohio Department of Insurance
Was this article valuable?
Here are more articles you may enjoy.