Virginia regulators are seeking to suspend the nation’s oldest black-owned insurer from doing business in the state, saying its finances are in hazardous condition.
The Virginia State Corporation Commission said that the North Carolina Mutual Life Insurance’s surplus dropped by more than a third during the 12 months that ended June 30, leaving it too close to the minimum required by law.
But the Durham, N.C.-based company says it is working to raise capital and boost its balance sheet.
Officials also say it is reducing expenses and has cut back on signing up new business.
The commission recommended suspending the company’s license. The company has asked for a hearing on the matter.
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