Standard & Poor’s has revised its counterparty credit and financial strength ratings on Tennessee malpractice insurer, American National Lawyers Insurance Reciprocal Risk Retention Group (American National Lawyers Insurance) to “R” from “Bpi.”
“This rating action was taken after the Tennessee Department of Commerce and Insurance placed American National Lawyers Insurance, along with two affiliated insurers, Doctors Insurance Reciprocal Risk Retention Group and Reciprocal Alliance Risk Retention Group, under receivership on Jan. 31, 2003,” Standard & Poor’s credit analyst Daryl Brooks said.
Tennessee insurance regulators cited the insurers’ hazardous financial condition and inability to cover existing claims as reasons behind the regulatory action. All three insurers were under risk-sharing arrangements, using reinsurance, with another affiliate, Virginia-based Reciprocal of America, which was placed under receivership by Virginia state regulators only two days earlier.
American National Lawyers Insurance, started in 1993, is a professional liability insurance company that is completely owned by its lawyer insureds. It is licensed to do business in Tennessee and South Carolina, and provides liability coverage for about 3,100 Tennessee lawyers.
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