CDI Issues C&D Order to Seibels Bruce Subsidiary

South Carolina-based Seibels Bruce Group Inc. announced that its subsidiary, South Carolina Insurance Company (SCIC), voluntarily agreed with the California Department of Insurance (CADOI) to cease and desist from transacting, soliciting or writing any new and renewal business in the state of California. The restrictions do not apply to the flood insurance business written through the National Flood Insurance Program.

This agreement relates to the Order Imposing Administrative Supervision and Appointing Supervisor issued from the South Carolina Department of Insurance (SCDOI) on Aug. 20 that came as a result of a dispute, which is currently in litigation in the Arizona state courts regarding a business agreement involving SCIC, another Seibels Bruce subsidiary, and Human Dynamics Corporation (HDC).

The agreement with the CADOI prevents additional risks from being added to policies that were previously issued to HDC. 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 Dec. 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 South Carolina