Allcity Insurance Co. has announced that effective immediately it will no longer accept new applications or binders for any insurance policies and that it has filed plans of orderly withdrawal with the New York Insurance Department for all lines of business where such plans are required.
Existing commercial lines policies will be non-renewed or replaced by Tower Insurance Company of New York or Tower Risk Management. Under an agreement reached with Tower, along with its parent, Empire Insurance Company, and its affiliate, Centurion Insurance Company, Tower will buy the renewal rights for substantially all of its remaining lines of business, excluding private passenger auto and commercial auto/garage, for a fee based on the direct written premium actually renewed by Tower.
The renewal rights to be sold to Tower include homeowners, dwelling fire, TOP, personal insurance coverage, personal umbrella, commercial multi peril, commercial fire, commercial umbrella and workers’ compensation. For the twelve months ended December 31, 2000, net earned premiums for the lines of business covered by the Tower agreement aggregated approximately $18 million. The closing of the transaction is subject to the approval of the New York Insurance Department.
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