Department Petitions Court to Place Auto Insurer IFA Insurance Company into Liquidation

TRENTON, N.J., March 8 -- The New Jersey Department of Banking and Insurance issued the following news release:

New Jersey Department of Banking and Insurance Commissioner Richard J. Badolato today announced that the Department has petitioned the Superior Court of New Jersey, Chancery Division to place the Clark-based auto insurer IFA Insurance Company into liquidation. Last year, IFA Insurance Company withdrew from the New Jersey auto insurance market and began the process of running off its business under the Department's supervision.

IFA also operated in Pennsylvania, Delaware and Maryland. The carrier has no active auto insurance policies in force in New Jersey, Pennsylvania and Delaware, and the approximately 400 active policies in Maryland will expire on or before March 31, 2017.

Once approved, the liquidation will enable the New Jersey Property Liability Guaranty Association (PLIGA) and other respective states' Guaranty Associations to trigger and cover IFA's remaining claims pursuant to their statutory authority. The Department is coordinating efforts with IFA and the Guaranty Associations that will cover IFA consumers to ensure an orderly transition and the continuation of claims payments.

"The Department and IFA were hopeful that the runoff would be able to be accomplished without the support from state guaranty funds for the payment of claims," said Commissioner Badolato. "However, this Department has reached the conclusion that IFA's financial condition has deteriorated such that the company is statutorily insolvent, necessitating the company's placement into liquidation."

As an interim step pending issuance of the liquidation order, the Department has entered into a public Amended Consent Order of Administrative Supervision with IFA Insurance Company. The Consent Order provides the Department with prior approval of all expenditures by IFA.

For additional information regarding IFA Insurance Company's insolvency proceedings, interested parties may go online at www.state.nj.us/dobi/division_insurance/finesolv.htm.

To make an inquiry or file a written complaint with the Department, consumers may go online at www.state.nj.us/dobi/consumer.htm or call the Department at 1-800-446-7467 or 609-292-7272.

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