Pennsylvania Court Approves Liquidation of First Sealord Surety Insurance
By Jeff Jeffrey | |
A.M. Best Company, Inc. |
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First Sealord Surety opened in 1991 as a monoline insurance company underwriting surety bonds. The company insured construction general contractors and subcontractors against loss. Until it stopped writing bonds, it offered coverage in 39 states, the department said in a statement.
Under the terms of the liquidation, the department will use all of the company's assets to pay policyholder claims. Creditors are also paid in order of priority and follow a proof of claims process. The department will then distribute any surplus funds to the shareholders. The company's policies will terminate within 30 days of the liquidation order.
"The court's approval of our petition puts numerous policyholder safeguards in place and establishes an orderly payment process," Insurance Commissioner
The liquidation order comes after global specialty insurer Torus walked away from a proposed acquisition of
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The rating actions reflected the increased uncertainty that the Torus acquisition would close, as well as A.M. Best’s expectation of "significant deterioration" in First Sealord's financial condition during the fourth quarter of 2011,
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Copyright: | (c) 2012 A.M. Best Company, Inc. |
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