MIIX Insurance Co., a subsidiary of The MIIX Group in Lawrenceville, N.J., has been placed into receivership. The Superior Court of New Jersey approved the request from the New Jersey Department of Baking and Insurance, which will take control of the troubled medical malpractice insurer, on Sept. 28.
The company stopped writing new policies in 2001 and is currently handling run-off business only.
The order does not stay payment of claims for any litigation currently pending against MIIX Insurance or its insureds and does not bar claimants from filing new actions against MIIX Insurance insureds. The order, however, prohibits persons from filing any new action or new claim directly against MIIX Insurance without permission of the court.
The order further provides that The MIIX Group and New Jersey State Medical Underwriters, Inc. will continue to provide administrative services to MIIX Insurance pursuant to a current management services agreement until terminated by the department after appropriate notice.
All directors and officers of MIIX Insurance and of its two subsidiaries, Lawrenceville Holdings, Inc. and MIIX Insurance Company of New York, resigned from their positions, effective Sept. 28.
The rehabilitation, which falls short of liquidation, comes after months of warning signals that the company was having difficulty.
The state takeover applies to MIIX Insurance Co. only, not parent company, The MIIX Group, or subsidiary, MIIX Advantage, which is still writing policies.
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