The California Department of Insurance (CDI) applied for and was granted a Conservation Order April 11 in Fresno County Superior Court for Alistar Insurance Company.
The CDI has been working with the company in the past weeks reviewing a rehabilitation proposal, and CDI plans to continue these efforts to work with the company and its general agent to issue new and renewal bail bonds.
California Insurance Commissioner Harry Low had served a Seizure Order upon Alistar due to its insolvency. Domiciled in California, the company has historically transacted workers’ compensation, private passenger auto liability and auto physical damage insurance, but over the past two years, began transitioning to primarily surety appearance (bail) bonds.
Alistar’s annual statement filed March 31, reported it has approximately $939,000 in policyholder surplus, which is less than the $1,950,000 of unimpaired minimum capital necessary of Alistar for the classes of insurance it is licensed to transact. After further examination, it was reported that the company is nearly under-reserved by $4 million.
The Conservation and Liquidation Office took over operations of the company earlier in the morning of April 11.
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