Calabasas, Calif.-based Amwest Insurance Group Inc. announced that the company has been unable to reach an agreement with its reinsurer on terms that would enable it to obtain necessary regulatory approval for such transaction.
Consequently, Amwest Surety Insurance Co. consented to the placement of the company under an administrative order of supervision by the Director of Insurance for the state of Nebraska pursuant to an Order of Supervision.
Supervision is an administrative order authorized pursuant to Nebraska law that enables the management to continue operating the company under the supervision of the Nebraska Director of Insurance. While in supervision, Amwest Surety Insurance Co. may not write or renew business; however, the company will continue to pay claims.
The Nebraska Department of Insurance has sought the cooperation of state insurance departments and requested that such states not revoke the Certificates of Authority held by Amwest Surety Insurance Co. in each respective state. Far West Insurance Co. is not subject to the Order of Supervision.
Amwest is an insurance holding company operating through its subsidiaries, Amwest Surety Insurance Co. and Far West Insurance Co.