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1999–2000 Insurance Company Insolvencies by State
The rehabilitation and liquidation processes
When an insurance company is placed in rehabilitation, the insurance
department of the state in which the insurer is incorporated seizes
control of the operations of the troubled company. The department
may then take steps, like suspending the payment of claims, searching
for sources of capital and putting on hold any lawsuits against
the company, to help return the company to stability. If the initiated
steps don’t work, the final step would be for the department
to place the company in liquidation. Liquidation means the insurance
department would close the company’s affairs by selling assets
to pay for outstanding claims and obligations.
Ohio rehabilitation activity
The Ohio Department of Insurance placed the following insurers
into rehabilitation during 2000:
- Total Health Care Plan, Inc.—July 26
- Credit General Insurance Company—November 6 (liquidation
on January 5, 2001)
- Credit General Indemnity Company (subsidiary of Credit General
Insurance Company)—November 21 (liquidation on December 12)
- Acceleration National Insurance Company—November 29
- Proliance Insurance Company—December 28
Note: Listed are insurance companies declared insolvent
during 1999 and 2000. The information includes the company’s
name, state of domicile, type of company (L/H = Life and Health;
P/C = Property/Casualty; FRAT = Fraternal; HMDI = Hospital, Medical
and Dental Service or Indemnity Corporation; HMO = Health Maintenance
Organization), type of report listing liquidation information (SS
= Single State—company operating in only one state; MS = Multistate—company
operating in two or more states) and month of liquidation.
Source: National Association of Insurance Commissioners (NAIC):
Status of Single State Company Departmental Conservations, Rehabilitations
and Liquidations, 1990–2000, as of December 1, 2000; and
Status of Multistate Company Departmental Conservations, Rehabilitations
and Liquidations, 1990–2000, as of December 1, 2000
* Infomation provided by Ohio Department of Insurance
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