SACRAMENT, June 14, 2021 / PRNewswire / – News that from New Mexico The Attorney General has decided to intervene in a lawsuit in which the California Insurance Company (CIC) opposes the unusual action that the California Department of Insurance (CDI) has taken to block the redomestication of CIC to New Mexico, was welcomed by Company officials who have long sought permission to move to the new jurisdiction.
At Friday 11 June, New Mexico Attorney General Herbert Balderas, Jr. submitted a quote request amicus curiae briefs in support of CIC in the lawsuit to bar CDI from reversing its initial approval of the CIC move and subsequent actions to thwart the Company and its redomestication.
Prosecutor General Balderas’ case is linked to the federal trial in the Eastern District of California filed by California Insurance Company of New Mexico against the insurance commissioner Ricardo lara, Deputy Insurance Commissioner Kenneth schnoll and Deputy Special Commissioner for Insurance Bryant henley.
In his court submission, Attorney General Balderas supports the claims made by the company in its efforts to break free from CDI’s unusual hold on the company and approved redomestication. According to M. Jeffrey Silver, Esq., Executive Vice President and General Counsel of the company: “We applaud the direct action of Attorney General Balderas acknowledging that our position is valid and also that the CDI has acted in a way that harms his condition since the presence of the California Insurance Company in New Mexico means jobs, better availability of insurance for the majority of the state’s minority consumers (Hispanics and Native Americans), and taxes for the state. “
As the Attorney General related in his motion for a friend filing, the Attorney General faithfully and accurately outlined the events leading up to this action. According to Mr. Silver: “In mid-October 2019 the Company, in the context of its takeover of Berkshire Hathaway, has asked the CDI for permission to move to New Mexico, after which the State of New Mexico held a hearing to approve the change of address. The hearing was attended by several regulators from states in which CIC is licensed. The approval was unanimous, including that of CDI officials. The Company, a highly respected A + rated insurer, had started planning its move to New Mexico with the regulators there, when, in November, California regulators suddenly and shockingly acted to block movement with the unusual and exotic imposition of a trusteeship. “
the friend the filing would support the views of many seasoned insurance watchers who have expressed disbelief and dismay at the apparently cavalier use of its power by the CDI. The purpose of guardianship is in the event of insolvency or when there is a danger for the policyholder. Mr. Silver added: “California had previously approved the redomestication, as well as approvals from several other state insurance regulators. The guardianship action that followed was among the most unusual ever, that is, the use of a mechanism created for cases of potential risk of a policyholder to accomplish the irrational blocking of the policy. ‘a solid financial entity. This is a first: the CDI has never used the retention procedure for anything other than financial concerns. Fortunately, a most reputable petitioner has now indicated that he will join the case to help bring it to a fair conclusion and allow from New Mexico regulators to continue their critical processes, currently frustrated by the actions of the CDI. As an “A” rated company with an excellent track record serving all communities in the states where we make policy, we are deeply concerned that CDI has used several questionable means, illegal or otherwise, to block our progress. In addition to the fact that the CDI’s actions do not serve taxpayers of California nor its insurance consumers, the CDI continues to California costly and public legal bills for this unnecessary conflict, now at the interstate level, which only benefits the lawyers of the plaintiffs. “
Mr. Silver continued: “On the other hand, from New Mexico Attorney General Balderas has taken a courageous step to protect the best interests of his fellow citizens. We have been frustrated for over a year and a half that our efforts to voice the merits of the case have been thwarted. We are confident that once we have passed our day in court, this matter will begin to receive the legislative and legal attention it deserves. This public body, the CDI, could have produced long-term gains for California public and its insurance community as a crisis in the availability of insurance in the state looms. Instead, CDI has sent a disheartening message to all insurers in the state and to those who wish to offer policies to Californians. “
Mr. Silver concluded: “In contrast, the properly prioritized public policy approach taken by Attorney General Balderas to protect his state at multiple levels is exemplary. He recognizes that redomestication, as approved, is good for all parties and does not deserve further delays. . “
For more information contact: Ryan gerding, Public Relations, at +1 (913) 602-8531 or [email protected].
About California Insurance Company (www.nacasualty.com)
California Insurance Company® (CIC) has an AM Best financial strength rating of “A” (Excellent) and a long-term issuer credit rating of “a” (Excellent). The rating applies to CIC and the seven insurance companies collectively referred to as the North American Casualty Group (NAC). According to the rating agency, “the ratings reflect the strength of NAC’s balance sheet, which AM Best considers to be very strong, as well as its strong operational performance, limited business profile and proper management of business risks.” The companies with confirmed ratings are: California Insurance Company, Continental Indemnity Company, Illinois Insurance Company and Pennsylvania Insurance Company, domiciled in New Mexico; Texas Insurance Company, domiciled in Texas; Oklahoma Property and Casualty Insurance Company, domiciled in Oklahoma; and Florida Casualty Insurance Company, domiciled in Florida.
About Applied Underwriters (www.auw.com)
Applied subscribers® is a global risk management services company that helps businesses and individuals manage uncertainty through its business services, insurance and reinsurance solutions. As a company, Applied Underwriters has distinguished itself through its innovative approaches to customer service and strong financial solidity. Applied Underwriters operate widely in US, UK, EU and Middle East. Its operational headquarters are located at Omaha, Nebraska.
SOURCE California Insurance Company