Standard & Poor’s assigned its “R” financial strength rating to Associated Physicians Insurance Co. (APIC). APIC was declared insolvent and placed into liquidation on Aug. 16, 2001, by the Circuit Court of Cook County, Ill. The agreed order was granted in response to a petition filed by Illinois Director of Insurance, Nathaniel Shapo, based on the insurance department’s finding that APIC’s policyholders’ surplus was impaired by more than $1 million.
APIC, based in Oak Brook, Ill., began operations in 1987 and is a wholly owned subsidiary of Associated Physicians Capital Inc., an Illinois holding company that is also based in Oak Brook. The company is licensed in nine states, and at year-end 1999, it had policyholders’ surplus of $403,064 and assets exceeding $5 million.
The Illinois Property and Casualty Guaranty Fund will protect the covered claims of Illinois residents.
An insurer rated “R” is under regulatory supervision owing to its financial condition. During the pendency of the regulatory supervision, the regulators may have the power to favor one class of obligations over others or pay some obligations and not others. The rating does not apply to insurers subject only to nonfinancial actions such as market conduct violations.
Topics Illinois
Was this article valuable?
Here are more articles you may enjoy.
Dubai Floods Expose Weaknesses to a Rapidly Changing Climate 
Vintage Ferrari Owners’ Favorite Mechanic Charged With Theft, Fraud 
Progressive Gains as Drivers Shop Around for Auto Insurance—Again 
Chubb to Acquire MGA Healthy Paws From Aon 
