California Insurance Commissioner Harry Low obtained an Order of Liquidation for PAULA Insurance Company based on the worsening financial condition of the company. PAULA, which is domiciled in California, is headquartered in Pasadena and is a wholly-owned subsidiary of Paula Financial. The company wrote primarily workers’ compensation insurance.
Low confirmed that PAULA’s financial condition was as stated in its December 31, 2001 Annual Statement which showed that the policyholder surplus as of December 31, 2001 was negative $22,028,334. Furthermore, Low has not discovered any additional assets that could reasonably lead to rehabilitation. Therefore, pursuant to the Order of Liquidation, Low will proceed to liquidate the business of PAULA. PAULA conducted the majority of its business in California but did business in other states as well.
Was this article valuable?
Here are more articles you may enjoy.
Travelers: Vendor Issues Over Half of Wedding Insurance Claims in 2025 
D&O Market Expected to Tighten Under Pressure, Says AM Best 
Miami Moves to Seize Part of Posh Island After Fuel Fight 
Georgia Brokers and Agents Alarmed After Court Ruling Expands Liability for Them 
