|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||May 8, 1997|
Insurance Director Named Receiver of
USA Property & Casualty Insurance Company
John A. Greene, the Director of the Arizona Department of Insurance, announced his appointment as Receiver of USA Property & Casualty Insurance Company in an order signed on May 7 by Judge Michael O'Melia of the Maricopa County Superior Court.
The Court found USA insolvent, and ordered the cancellation of all insurance policies issued by USA effective in 30 days, unless a policy expires sooner on its own terms. The court further ordered that efforts be made to rehabilitate the company.
In mid-April, the Department commenced a financial examination of USA. Before the completion of the examination, USA's President, John R. "Sonny" Pascale, turned over the keys to USA's office in Miami, Florida, to Department representatives, but not before removing the computer system and many of the company's records. The Department commenced these receivership proceedings on April 28, 1997 in the wake of these actions by company management.
USA, licensed in Arizona since October 1994, wrote automobile physical damage coverage. Claims under USA's policies will be turned over to the Arizona Property & Casualty Insurance Guaranty Fund.
USA policyholders are encouraged to contact their agents to obtain replacement coverage. Policyholders with questions about claims should contact the claims adjusting firm retained by the Guaranty Fund at 997-5877.