Ohio Director of Insurance Lee Covington today announced that the Franklin County Court of Common Pleas granted an order on Feb. 28 placing Acceleration National Insurance Company, an Ohio domiciled property and casualty company based in Simsbury, Connecticut, into liquidation. The company had been in court-ordered rehabilitation since Nov. 29, 2000.
Court approval of the liquidation triggers state guaranty association funds to cover benefit payments to Acceleration National insureds. Acceleration National primarily wrote commercial automobile coverages to the common carrier industry, but stopped accepting new insurance risks in July 1999.
Ohio domiciled insurance companies are required to file audited annual financial statements and unaudited quarterly financial statements with the Ohio Department of Insurance. Ohio domiciled companies are also required to maintain minimum capital and surplus pursuant to the Ohio Revised Code.
In its Sept. 30, 2000 financial filing, Acceleration National reported surplus of less than $750,000, which falls below the required statutory minimum surplus amount. Based on these financial statements of Acceleration National, which showed deteriorated and hazardous financial condition, the Ohio Department of Insurance moved to place Acceleration National into rehabilitation to protect the company’s insureds and creditors in November 2000.
Topics Ohio
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