BUSINESS ALLIANCE INSURANCE COMPANY / CALIFORNIA
Posted: Wed Dec 19, 2007 4:45 pm
I HEARD THAT BUSINESS ALLIANCE INSURANCE COMPANY IN IN SOME KIND OF TROUBLE. CAN ANYONE ELABORATE REGARDING THIS?
They were downgraded again last week.
According to ambest.com, "The downgrades reflect BAIC's immediate parent's, National Farm Financial Corporation (NFFC) (San Bruno, CA), filing for Chapter 11 bankruptcy protection in federal court on December 5, 2007. The filing for protection is in response to an October 4, 2007 legal judgment against BAIC, NFFC and the group's principal controlling shareholder (all joint and several). The judgment, which relates to an unsuccessful attempt by Public Service Mutual Holding Corporation (PSMHC) (New York, NY), an intermediate holding company, ultimately owned by Public Service Mutual Insurance Company, to acquire BAIC. The judgment calls for a large payment in damages to PSMHC. Should this judgment ultimately be enforced, it is likely that BAIC could become impaired and require the intervention of the California Department of Insurance."
Further information is publicly available from the Federal court in Los Angeles.
If IJ were to report the details of that case it should make for interesting reading.