|JOHN A. GREENE
ARIZONA DEPARTMENT OF INSURANCE
2910 North 44th Street, Suite 210, Phoenix, Arizona 85018-7256 · (602) 912-8456 · FAX: (602) 912-8452
|Executive Assistant Director||FOR IMMEDIATE RELEASE|
|602/912-8451||April 29, 1997|
Insurance Director Secures Court Ordered Control of
USA Property & Casualty Insurance Company
John A. Greene, the Director of the Arizona Department of Insurance announced today the issuance of a court order by the Maricopa County Superior Court giving the Director "full and exclusive power of management and control of USA Property & Casualty Insurance Company" pending a hearing on the Department's application for the appointment of a receiver. The company primarily writes automobile physical damage insurance in Arizona.
The order, signed by Judge Michael O'Melia on April 28, 1997, followed the filing of proceedings by the Director for the appointment of a receiver of the company.
These proceedings were prompted by the sudden relinquishment of control of USA Property & Casualty Insurance Company by its management.
The Director continues to review the financial condition of USA Property & Casualty Insurance Company and will determine whether to continue or discontinue its existing business. The Director also will explore the possible sale of the company, or the sale of its insurance business only.
Under the authority granted to him by Judge O'Melia, the Director also announced that USA Property & Casualty Insurance Company will not write any new insurance business in Arizona. Further, the Director also announced a temporary moratorium on the payment of claims by the company until the completion of the ongoing review of the company's financial condition.
USA Property & Casualty Insurance Company has been in operation in Arizona since 1994. At the end of 1996, the company reported that it has issued approximately 25,815 policies in this state.
Questions about the company, including questions about claims and claims status should be directed to 602/277-4807.
Judge O'Melia ordered that a hearing will be held on May 7, 1997 to consider the Director's request for the appointment of a receiver.