A.M. Best Downgrades First National Life, Franklin Protective Life, Family Guaranty Life to E - Under Regulatory Supervision -.OLDWICK, N.J.--(BUSINESS WIRE)--May 11, 1999-- A.M. Best Co. today downgraded First National Life Insurance Co. of America, Franklin Protective Life Insurance Co., and Family Guaranty As a verb, to agree to be responsible for the payment of another's debt or the performance of another's duty, liability, or obligation if that person does not perform as he or she is legally obligated to do; to assume the responsibility of a guarantor; to warrant. Life Insurance Co. were downgraded to E (Under Regulatory Supervision) as a result of the actions of the Mississippi Insurance Department. Mississippi Insurance Commissioner George Dale George Dale was the lover and criminal partner of Eleanor Jarman, dubbed by the press "The Blonde Tigress," and was executed by the State of Illinois on April 20, 1934 for the murder of Chicago clothier Gustav Hoeh. announced yesterday that the three affiliated companies Affiliated Companies A situation that occurs when one company owns a minority interest (less than 50%) in another company. Also refers to companies that are related to each other in some way. Notes: An affiliated company is sometimes referred to as a subsidiary. were placed in financial rehabilitation due to fiscal irregularities. Last week, the insurance department could not verify the companies' assets and were placed under administrative supervision. Under the new order, the Mississippi insurance department will install its own management team until the financial affairs of the companies are put back in order. Previously, Franklin Protective Life, Franklin, Tenn., carried a B (Fair) rating; Family Guaranty Life, Franklin, Tenn., was rated C++ (Marginal); and First National Life, Birmingham, Ala., was rated B+ (Very Good), with a negative outlook. The negative outlook was assigned because of an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. caused by a large reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. transaction. The B (Fair) rating of Franklin American Life Insurance Co., and the B- (Fair) ratings of Farmers & Ranchers Life Insurance Co., and International Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. Life Insurance Co., were downgraded to C++ (Marginal). These companies, all of Franklin, Tenn., are affiliates of the companies that were placed under supervision. Their ratings also were placed under review with negative implications. A.M. Best Co., established in 1899, is America's oldest and most widely recognized insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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