PETROSURANCE IN RECEIVERSHIP

Oklahoma District Court Judge Dan Owens, acting on a request by state insurance commissioner Carroll Fisher, placed Petrosurance Casualty Corp. of Arlington, Texas, into receivership after the discovery that the company is $5.2 million in debt. Regulated by the Oklahoma Insurance Department, Petrosurance specialized in workers’ compensation coverage for oil field employers in Texas, Oklahoma, Louisiana and Kansas. Such carriers are required by law to have $5 million in surplus to provide workers’ comp coverage. The company was placed into conservatorship by Leamon Freeman, an independent hearing officer for the insurance department, in January after finding it had much less than the required $5 million in surplus. Once regulators assumed control of Petrosurance, they found the company to be insolvent. Now that receivership has been ordered, the Oklahoma Property and Casualty Insurance Guaranty Association will pay workers’ comp claims owed by Petrosurance.

Topics Workers' Compensation Oklahoma