R.I. Regulators Assume Control Over Insurer
NU Online News Service, May 5, 4:23 p.m. EDT?The Rhode Island insurance officials said they took control of the state's Pawtucket Mutual Group late last week, a move prompted by five years of amounting losses that weakened the 155-year-old property-casualty insurer.
Rhode Island Department of Insurance regulators said that this is the first time in more than 10 years that Rhode Island has taken such action against an insurance company.
The decision by regulators to put Pawtucket Mutual in "voluntary rehabilitation" means policies issued by the insurer and its subsidiary Narragansett Bay would remain in effect, but no new policies would be written while the company is being reorganized.
Based in Pawtucket, R.I., the company offers a range of personal lines products, including homeowners, personal auto, personal umbrella, boat and inland marine.
The carrier also provides commercial insurance lines such as business owners, commercial auto, commercial package policies and excess liability coverage.
At the end of last year, Pawtucket Mutual and Narragansett Bay had 118,736 policies, but the company lost $10.8 million in 2002, and premiums have been falling in recent years, the department said.
Commenting on the department's decision, the company stated: "We want to emphasize that this action does not jeopardize any of our customers and policyholders in any way. People who have insurance policies with Pawtucket Mutual and Narragansett Bay should be assured that their policies remain in force and their coverage remains in place."
The company also said that it is not insolvent and that by agreeing to be placed in voluntary rehabilitation, "we are acknowledging that there are some financial concerns that need to be addressed. We will continue to cooperate with the department."
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
