Georgia Regulators Order Liquidation of Georgia Mutual

By Michael Adams | March 24, 2014

A Georgia superior court judge has given regulators approval to liquidate a former automobile insurer.

Cynthia Write, judge of the superior court of Fulton County, signed-off on an order in February that will allow regulators to liquidate Georgia Mutual Insurance, a stock company.

The insurer, which specialized in automobile insurance, had been placed under regulators’ control in October 2013.

Georgia Insurance Commissioner Ralph Hudgens has been formally named liquidator of Georgia Mutual, giving him full control over the insurer’s assets, financial records and contracts with other companies.

The Georgia Insurers Insolvency Pool will handle all claims filed against Georgia Mutual. Policyholders have until August 9 to file claims with the pool.

GIIP Chief Financial Officer Carol Wright said that so far the pool has received 200 open claims and has 80 claims that are classified as inactive. She said the pool is expected to receive more claims and it may take up to a month to calculate the total monetary value of those claims.

“We just received the claim file and started our review,” said Wright. “It will probably be a month or so before we know what the reserves should be.”

This is not the first time Georgia Mutual has run afoul of regulatory oversight. The insurer had previously been placed under administrative supervision in the mid-2000s and the mid-1990s. On those occasions, however, the insurer recovered sufficiently to again operate in the state.

 

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