Foundation Reserve in Trouble; Overseer Ordered

The Albuquerque Journal, NM, last week reported that the New Mexico Insurance Division has ordered a state appointed overseer to monitor the state's largest workers' compensation insurance company, Foundation Reserve Insurance Co. Foundation, which is owned by New Mexico Mutual Casualty Co., "is in hazardous financial condition," the order says. According to State Insurance Superintendent Eric Serna, Foundation $3.8 million in the first six months of this year and the company's net worth of $6.2 million has dropped to $2.9 million in that period alone. Serna told the paper that Foundation sold...