San Diego-based Frontier Pacific Insurance Company was conserved Friday in a move by California Insurance Commissioner Harry W. Low. The ruling came as a result of the company being found insolvent.
Domiciled in California, the company is a wholly owned subsidiary of Frontier Insurance Company which is a New York domiciled company. Further expanding its geography, the stock of Frontier Insurance Company is owned by Frontier Insurance Group Inc. which is a Delaware-based insurance holding company.
In making its decision Low and the California Department of Insurance used a recent financial study of the company to receive a conservation order from the Superior Court of San Diego. Upon review of the study, it was determined that the company was insolvent by more than $5 million. It turns out the company is due significant amounts from its insolvent parent company, Frontier Insurance Company.
The Conservation and Liquidation Office will handle the conserved company and the offices of Frontier Pacific will stay open during normal business hours. New and renewal business handlings were already voluntarily suspended recently and all workers compensation claims will be paid.
The New York Department of Insurance recently received an order granting it temporary rehabilitator of Frontier Insurance Company due to a petition with a showing of insolvency.
While handling most of its business in California, Frontier Pacific did conduct business in other states. The company authored private passenger auto liability, auto physical damage, licensing, surety, and bail bonds. Frontier Pacific also wrote some workers’ compensation policies.
Was this article valuable?
Here are more articles you may enjoy.