On Sept. 8, Superior National Insurance Group Inc. reached an agreement with the California Department of Insurance (CDI) and certain affiliates of the Kemper Insurance Group under which the conservation of Superior National’s insurance companies and Superior National’s reorganization efforts will continue simultaneously.
Through this agreement, the transition of Superior National’s prior insurance underwriting operations to Kemper and the CDI was accomplished. In addition, Superior National’s insurance servicing operations, conducted through SN Insurance Services Inc. (SNIS) and SN Insurance Administrators Inc. (SNIA), were separated from Superior National’s prior underwriting operations. As a result, SNIA and SNIA can now continue their operations under Superior National control.
Under the agreement, SNIS and SNIA remain approved and licensed entities to conduct their historic managing agency and third party administrator business. The agreement also resolved certain inter-company accounting issues, as a result of which SNIS remitted $24 million to the CDI upon execution of the agreement, and will remit at least $30.6 million of additional funds to the CDI upon approval of the agreement by the several courts having jurisdiction over Superior National and its former insurance subsidiaries.
The CDI also agreed to a zero cost commutation of a longstanding reinsurance contract between a conserved insurance company and a Bermuda-domiciled affiliate of Superior National.
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