Standard & Poor’s Ratings Services said that it assigned its ‘R’ financial strength rating to Ore.-based Grange Mutual Insurance Co. upon learning that the company has filed for bankruptcy protection from the U.S. Bankruptcy Court for the District of Oregon.
The company was granted permission from the bankruptcy court to terminate all of its policies, effective Oct. 1, 2002.
Grange Mutual is an exempt insurer in Oregon. Therefore, it does not belong to either of the state’s two guaranty funds, and the company’s policyholders are not eligible for protection from the funds.
Grange Mutual commenced business in 1885 and is domiciled in Oregon. The company’s major lines of business included private passenger auto, auto physical damage, and homeowners insurance.
“An insurer rated ‘R’ is under regulatory supervision owing to its financial condition,” explained S&P’s credit analyst Allison MacCullough. “During the pendency of the regulatory supervision, the regulators may have the power to favor one class of obligations over others or pay some obligations and not others. The rating does not apply to insurers subject only to non-financial actions such as market conduct violations.”
Topics Oregon
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