California Liquidation Office Criticized
California Correspondent
Californias official auditor has issued a sharply critical study–again–of the section of the Department of Insurance that seizes and operates insolvent insurers, saying that the department doesnt adequately supervise the office and doesnt sufficiently protect insurers assets, and has spent at least $6 million on an automated claims-handling system that doesnt meet its needs.
The July report by the Bureau of State Audits is the latest in a series of studies targeting the Conservation and Liquidation Office. Earlier audits, released in May 1994 and April 1996, were also critical of the operation, which is at the heart of the departments regulatory and enforcement functions. The office also was the subject of a separate, private audit.
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