Standard & Poor’s assigned its “R” financial strength ratings to three subsidiaries of The Seibels Bruce Group Inc.: South Carolina Insurance Co. (SCIC), Catawba Insurance Co. (CIC), and Consolidated American Insurance Co. (CAIC). Concurrently, Seibels Bruce announced it has been notified by Demotech Inc. that its Financial Stability Rating(R) for CAIC and SCIC has been suspended.
Both ratings actions reflect the fact that the South Carolina Department of Insurance (SCDOI) placed the companies into administrative supervision on Aug. 20. Subsequently Seibels Bruce received a Consent Order from the Arizona Department of Insurance suspending the certificate of authority held by CAIC in Arizona to write new and renewal insurance business.
The order issued by the SCDOI imposes administrative supervision on the three subsidiaries for at least six months because of a dispute concerning a business agreement between the company and Human Dynamics Corp. (HDC) in Arizona and California.
Seibels Bruce is currently in litigation contesting a decision by an Arizona court about the dispute. The company is also assessing the regulatory impact of the order and will work with the insurance department to come up with a plan to request authority to write renewal risk-bearing insurance.
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