WHO SAYS FREMONT’S A FAILURE’

A newsbrief entitled “Failures on the Rise” that appeared in the Jan. 15 issue of IJ had lots of our readers confused as to the status of Fremont. According to Weiss Ratings Inc., an independent provider of ratings and analyses on the insurance industry, Fremont Indemnity Company, Fremont Industrial Indemnity Company and Fremont Casualty Insurance Company were listed among the largest failed companies in 2000. Weiss’ definition of a failed company is a company that is either 1) under supervision of state insurance commissioners; 2) is in the process of liquidation; or 3) has voluntarily dissolved after disciplinary or other regulatory action by state insurance commissioners. Prior to receiving Weiss’ failure status, all three companies reported ratings of “C-” (Fair). The ratings reflected that the companies offered fair financial security and were stable at the time of the rating. But according to Weiss, a “Fair” rating also means that during an economic downturn or other financial pressures, the companies may encounter difficulties in maintaining their financial stability. For more information on Weiss’ ratings and definitions visit www.weissratings.com.