The Franklin County Court of Common Pleas in Ohio has granted an order placing property casualty insurer Credit General Insurance Co. into liquidation. The Ohio Department of Insurance placed the company in rehabilitation Nov. 6, 2000, and at that time filed a liquidation plan and request for liquidation order.
The hearing on the order was held late last week with the court approving the liquidation plan that triggers guaranty association funds in most states to cover benefit payments to Credit General policyholders. Credit General was placed into rehabilitation due to its deteriorated financial condition 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. Certain reinsurers of the company have failed to pay their share of the claims, as well.
Credit General Insurance Company wrote commercial coverages including workers’ compensation, commercial auto, contractor’s general liability and surety products. Credit General was licensed in 48 states.
Topics Ohio
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