HIH and Great States Subject of DOI Action

The WorkComp Executive reports that the Department of Insurance has take action to conserve HIH America Compensation and Liability Company and Great States Insurance Company. The DOI staff obtained a court order from San Francisco County Superior Court on the basis that the companies are insolvent and unable to meet the minimum capital and surplus requirements. According to the Executive, an independent actuarial study showed the HIH, Great States, and a Hawaiian affiliate under-reserved by $81 million. The action against HIH was prompted by the reserve shortfall, and its inability to...