Old Republic Files a Corrective Plan for the Run-Off of Its RMIC Mortgage Guaranty Unit [Manufacturing Close – Up]

Old Republic International Corp. announced that its flagship mortgage guaranty subsidiary, Republic Mortgage Insurance Company ("RMIC"), had received a Notice of Hearing from the North Carolina Department of Insurance ("NCDOI").

According to a release, the Hearing is scheduled for October 16, and its purpose is to enable stakeholders to consider a revised Corrective Plan ("the Plan") submitted by RMIC on September 14, as required by the NCDOI Commissioner's Summary Order ("the Order") dated January 19. The Hearing has also been scheduled to determine whether the Summary Order should be modified and extended, whether the original deferred payment claim obligation structure established by the NCDOI should be changed, and whether the Plan should be approved and incorporated into the Summary Order. In substance, RMIC's Corrective Plan seeks to accomplish the following major objectives:

-To increase the cash portion of all settled claims to 60 percent from the current 50 percent. As a consequence the Deferred Payment Obligation ("DPO") retained in claim reserves would be reduced to 40 percent from the current 50 percent level.

-To authorize RMIC to execute the DPO-based run-off plan under ORI's ownership and NCDOI supervision of RMIC to assure the most efficient and economically sound realization of benefits to policyholders.

-To ensure the continued operation of RMIC under supervision during such future period of time as necessary to accomplish the above objectives.

The Notice of Hearing, an Executive Summary from a report submitted to the NCDOI by an actuarial firm retained by it, and RMIC's Corrective Plan dated September 14, have been posted on both RMIC's and ORI's web-sites.

More information:

www.oldrepublic.com

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