L. Tim Wagner, Director of the Nebraska Department of Insurance, announced that he had issued an order on Friday placing Acceptance Insurance Company under supervision.
Acceptance is the parent company of American Growers Insurance Co., the crop insurer that was placed under supervision at the end of November following a series of losses.
Acceptance had hoped to sell the subsidiary to Rain and Hail L.L.C., but the U.S. Dept of Agriculture’s Risk Management Agency, which oversees crop insurance, refused to approve the special conditions contained in the sale agreement.
Acceptance shares have been suspended from trading on the New York Stock Exchange since Nov. 20.
Wagner’s announcement indicated that “all claims are being adjusted and paid as usual by the company. The Order of Supervision was issued by the Director of Insurance due to the significant losses experienced in the insurance operations of the company this year.”
The order effectively places Acceptance into run-off under the supervision of the Insurance Department, unless and until it can file proof that it complies with statutory requirements to continue in business.
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