South Carolina Insurance Co., part of the Columbia-based Seibels Bruce group, has been declared insolvent by state insurance regulators and will be liquidated.
The company and its subsidiary, Consolidated American Insurance Co., has been closed by a court-appointed receiver called in to settle all claims and obligations.
According to a Department of Insurance spokesperson, South Carolina Insurance stopped writing and renewing policies about three years ago in 45 states.
No claims exist in South Carolina, but policies could be called in within a handful of other states with environmental coverage and workers’ compensation claims.
The insurance department will pay off such claims with whatever money is left. When that runs out, last-resort guaranty funds in states where claims surface will kick in to cover policyholders.
The insurer’s 2004 annual statement showed the company carrying a deficit of $2.3 million, compared with a $4.4 million surplus the year before.
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