Arkansas regulators have suspended the Certificate of Authority of Lincoln General Insurance Company, domiciled in Pennsylvania, due to the company’s “financially hazardous condition.”
In a March 24 order, Arkansas Insurance Commissioner Jay Bradford said Lincoln General’s capital and surplus had decreased by 97.3 percent in the fourth quarter of 2009. It has a negative net income of nearly $136 million, according to the order.
Pennsylvania’s insurance department filed suit in November 2009 against Lincoln General’s parent company, Kingsway Financial Services Inc., as a result of the downturn in the company’s finances. Pennsylvania regulators said at that time the department would take legal action against Toronto-based Kingsway over its attempt to divest Lincoln General Insurance Co.
Lincoln General, specializes in commercial insurance for the trucking industry. The company was directed to stop writing new and renewal business in Arkansas.
Source: Arkansas Department of Insurance
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