Ohio Department of Insurance Director Lee Covington suspended the authority to transact business of five Ohio licensed companies of Highlands Insurance Group on Jan. 30, after determining that further business transactions by the company would be hazardous to policyholders.
Highlands experienced significant operating losses during the ninth month period ending Sept. 30, 2001.
Ohio licensed companies of Highlands Insurance Group are Highlands Insurance Company, a Texas property and casualty company; Pacific National Insurance Company, a California property and casualty company; Northwestern National Casualty Company, a Wisconsin property and casualty company; NN Insurance Company, a Wisconsin property and casualty company; and American Professional Insurance Company, an Indiana property and casualty company.
According to consent orders agreed to by Covington and Highlands Insurance Group:
* Highlands will immediately cease and desist from soliciting, issuing or writing any new or renewal policies or insurance contracts and from assuming any risk in the State of Ohio.
* Highlands shall not write new or renewal insurance business in the State of Ohio until it demonstrates that it has adequate capital and surplus and is not operating in hazardous financial condition.
* Highlands agrees to continue filing required financial statements and pay any required fees and taxes, and to continue to service existing policies or contracts of insurance issued to persons residing in Ohio.
Based on information contained in the Sept. 30, 2001 quarterly statement, Highlands Insurance Company’s capital and surplus decreased from approximately $127 million to approximately $94 million during the previous nine months.
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