California Insurance Company Authorized to Issue
We are writing to address the marketplace confusion in which California Insurance Company finds itself embroiled. We ask your help to stop those that are fanning the flames of discord and fear for their own vested interests. California Insurance Company is among the strongest insurance companies serving California. It is fully authorized to issue new and renewal insurance policies and steadfastly committed to delivering outstanding insured and claimant services.
You have no doubt heard of the regulatory disputes that have arisen out of Applied Underwriters’ $920MM stock repurchase from Berkshire Hathaway. Every state regulator other than California that was required to approve the transaction, in whole or in part, timely did so. California, however, failed to act. One business day before the scheduled deadline for closing the transaction, the California Department of Insurance wrote that it could neither approve nor disapprove the transaction.
With the closing deadline looming, the New Mexico Department of Insurance offered a solution: California Insurance Company could move to their state. A public regulatory hearing was convened by New Mexico, at which the California Department of Insurance staff and attorneys participated. When given the opportunity to voice objections, the California Department of Insurance did not do so.
The California Insurance Company now finds itself in a regulatory quagmire. The California Department of Insurance claims that California Insurance Company remains a California company. It sought and obtained an ex parte order of a court putting the California Insurance Company in a conservatorship. The New Mexico Department of Insurance has issued a statement declaring that the approved transaction resulted in the creation of a New Mexico domestic insurer not subject to such an action by the California Department of Insurance.
The California Insurance Company is cooperating with everyone to seek a solution. This includes fully cooperating with the appointed conservator and complying with the orders of the court that entered the original ex parte order.
We want to stress the following:
- First and foremost, California Insurance Company was placed in conservatorship pending the resolution of the above regulatory matters, not financial matters. California Insurance Company remains among the strongest insurance companies serving California.
- California Insurance Company is fully authorized by both California and New Mexico to issue new and renewal insurance policies in California and across the United States.
- California Insurance Company continues to provide insured services, including adjusting claims as always.
California Insurance Company remains focused on conducting business in the ordinary course. For us, this means striving for excellence in everything we do - the type of excellence that has afforded us the privilege to work with you and serve our insureds together for years.