Credit General Insurance Co., a property and casualty company based in Beachwood, Ohio, has been placed into rehabilitation by the Ohio Department of Insurance. The move comes after an extensive financial examination and investigation of Credit General, which found the company’s deteriorated financial condition necessitating rendering it insolvent.
The company’s financial condition was caused in large part because of money due but not paid to Credit General from its financially weak parent and affiliate companies as well as the diversion of corporate funds. Also, reinsurers of the company have failed to pay their share of claims.
Through its investigation, the department also uncovered information about potential criminal actions by Credit General and its officers. The department is in discussions with the appropriate law enforcement and prosecutorial agencies and will be submitting a criminal referral when its investigation is fully completed later this month.
Credit General Insurance Company will be operated in rehabilitation by the department to protect the interest of policyholders and creditors. The department is engaged in discussions to sell the company. Credit General is currently licensed to do business in 48 states.
Topics Ohio
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