Minnesota Commerce Commissioner Jim Bernstein announced that Credit General Insurance Company of Beachwood, Ohio is insolvent and should be liquidated. The Order of Liquidation, sought by the commissioner and granted by Ramsey County District Court, states that allowing Credit General to continue to conduct business in Minnesota would be financially hazardous to its policyholders and creditors.
There are over 340 Minnesota residents who were receiving wage loss and medical benefits pursuant to worker’s compensation insurance policies issued by Credit General. The company has suspended those payments. Credit General’s financial statements indicate the company has a negative surplus of more than $10 million and has reported losses of over $24 million during the first six months of 2000.
On Nov. 7, 2000, an Ohio court named the Ohio Superintendent of Insurance as Rehabilitator of Credit General based on that department’s determination that Credit General was not in a condition to continue operations. The Minnesota Department of Commerce conducted an independent review of Credit General’s financial status and also determined that the company was unable to pay its debts or meet its obligations. “Ordering this company into liquidation ensures that claims will be paid in a timely fashion by the Minnesota Insurance Guaranty Association,” said Commissioner Bernstein.
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