Virginia Orders Reciprocal Liquidated

The Virginia State Corporation Commission (SCC) found on June 20th that Reciprocal of America (ROA) is insolvent and ordered that the Virginia-domiciled insurance reciprocal be liquidated. The company and its attorney-in-fact, The Reciprocal Group (TRG), were placed into receivership on January 29, 2003. Following a hearing held on June 19, the SCC concluded that further efforts to rehabilitate the companies are useless. As of January 29, 2003, ROA was insolvent by more than $214 million. TRG was insolvent by nearly $13.4 million. Evidence presented to the Commission showed that the finan...