Time for our history lesson boys and girls. Just a few short years ago, the CA DOI helped Fremont Comp/Fremont Indemnity from tanking. This allowed Fremont General to sell the assets of the companies (i.e. sell the renewal rights) to EICN. The understanding was that Fremont General would manage the claims (i.e. liabilities), and help prevent the DOI from having to cease the carrier and declare them insolvent.
Well…we all know what happened. The bafoons (i.e. Rampino, McIntyre, etc) in Santa Monica mis-handled everything from the get go, and the DOI had to step in.
Result, Fremont General WALKS AWAY from a ton of liabilities, and continues on with their sub-prime lending.
And…to boot, the court says that their creative accounting is o.k.
Time for our history lesson boys and girls. Just a few short years ago, the CA DOI helped Fremont Comp/Fremont Indemnity from tanking. This allowed Fremont General to sell the assets of the companies (i.e. sell the renewal rights) to EICN. The understanding was that Fremont General would manage the claims (i.e. liabilities), and help prevent the DOI from having to cease the carrier and declare them insolvent.
Well…we all know what happened. The bafoons (i.e. Rampino, McIntyre, etc) in Santa Monica mis-handled everything from the get go, and the DOI had to step in.
Result, Fremont General WALKS AWAY from a ton of liabilities, and continues on with their sub-prime lending.
And…to boot, the court says that their creative accounting is o.k.
Only in California….
Got to give them credit !Like a diamond, Fremont shines. Look at the Beauty..
Fremont files BK:
Transfers its liability to the State of CA (workers comp claims).
State of Ca takes off the burden for Fremont. Now Sate of Ca has the burden.
Off we go to new ventures ( perhaps a new insurance company?)Sure why not!
Way to Go !!
The DOI would never consider granting a Certificate of Authority to Fremont General for starting another insurance company.
Besides, the stockholders probably wouldn’t approve it either.