A Tennessee court granted the petitions of Insurance Commissioner Paula A. Flowers to place three insurance reciprocals that write malpractice insurance into receivership. Receivership will allow the state Commerce and Insurance Department to direct the day-to-day operations of the reciprocals—Doctors Insurance Reciprocal RRG, American National Lawyers Insurance Reciprocal RRG and the Reciprocal Alliance RRG.
Former state attorney general, Knox Walkup, was appointed special deputy receiver in charge of managing the companies’ business affairs.
Flowers previously placed the three RRGs under administrative supervision following questions about their financial stability and that of their sole reinsurer, Reciprocal of America (ROA) of Richmond, Va. ROA was placed into receivership last week by the Virginia Bureau of Insurance.
Under the reinsurance agreement, the reciprocals transferred all of their risk to ROA, which receives a portion of the insurance premiums collected by the groups.
Was this article valuable?
Here are more articles you may enjoy.
Kroger Plans to Slash 37% of Corporate Jobs in Next Three Years 
Eastern States’ Grocers Shut Online Systems After Cyberattack 
Banking Watchdogs Ramp Up AI Scrutiny as Stability Fears Mount, Sources Say 
Business Interruption Claims Approach $1M Average, Says Allianz 
