Seibels Bruce Group Discloses Order from Ariz. Dept. of Insurance

The Seibels Bruce Group Inc. announced that it received a Consent Order issued yesterday from the Arizona Department of Insurance (AZDOI) suspending the certificate of authority held by its subsidiary, Consolidated American Insurance Company (CAIC), to transact new and renewal insurance business in the state of Arizona. This Order is in response to the Order Imposing Administrative Supervision and Appointing Supervisor issued from the South Carolina Department of Insurance (SCDOI) on August 20, 2002.

The Arizona Order came as a result of a dispute, which is currently in litigation in the Arizona state courts regarding a business agreement involving CAIC, South Carolina Insurance Company (SCIC), another Seibels Bruce subsidiary, and Human Dynamics Corporation (HDC).

The Arizona Order prevents additional risks from being added to policies that were previously issued to HDC. CAIC does not write any business in the state of Arizona other than that covered by the policies involved in the current litigation with HDC. The Arizona Order does not restrict the ability of SCIC to continue to write flood insurance in the state of Arizona. For the year ended December 31, 2001, and the six months ended June 30, 2002, SCIC wrote $0.04 million and $0.02 million, respectively, of flood insurance premiums in the state of Arizona.

Seibels Bruce expects the California Department of Insurance to take similar action against SCIC in the near future and permit the company to continue to write flood insurance business in California. SCIC does not write any business in the state of California other than that covered by the policies involved in the current litigation with HDC and flood insurance. For the year ended December 31, 2001 and the six months ended June 30, 2002 SCIC wrote $4.8 million and $2.2 million, respectively, of flood insurance premiums in the state of California.

Topics California Flood Arizona