A.M. Best Downgrades Franklin American To E; Removes Rating From Under Review.OLDWICK, N.J.--(BUSINESS WIRE)--May 18, 1999-- A.M. Best Co. today downgraded Franklin American Life Insurance Co. to E (Under Regulatory Supervision) from C++ (Marginal). The rating was also removed from under review. On May 11, the Chancery Court The Chancery Court of York is an ecclesiastical court for the Province of York of the Church of England. The presiding officer, the Official Principal and Auditor, has been the same person as the Dean of the Arches since the nineteenth century . of the State of Tennessee Twentieth Judicial District, Davidson County Davidson County is the name of two counties in the United States:
The Chancery Court also has appointed Douglas M. Sizemore, Commissioner of Commerce and Insurance, as rehabilitator. Sizemore intends to make every effort to rehabilitate re·ha·bil·i·tate v. 1. To restore to good health or useful life, as through therapy and education. 2. To restore to good condition, operation, or capacity. the company and will oversee Franklin American's management for the protection of the company's policyholders. If the commissioner believes further efforts to rehabilitate the insurer An individual or company who, through a contractual agreement, undertakes to compensate specified losses, liability, or damages incurred by another individual. An insurer is frequently an insurance company and is also known as an underwriter. would substantially increase the risk to policyholders, creditors or the public--or to be futile--the commissioner is permitted to petition for relief to convert this action to liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy . This action by Tennessee against Franklin American Life follows the recent action taken by the Mississippi Insurance Department against affiliates, First National Life Insurance Co. of America, Franklin Protective Life Insurance Co. and Family Guarantee Life Insurance Co., which were placed in financial rehabilitation because of financial irregularities. Last week the Mississippi Insurance Department could not verify (1) To prove the correctness of data. (2) In data entry operations, to compare the keystrokes of a second operator with the data entered by the first operator to ensure that the data were typed in accurately. See validate. the assets of these companies. The insurance department is currently overseeing operations at the companies' offices. Franklin American Life Insurance Co. has been doing business in Tennessee since 1952. At the end of 1998, the company's assets totaled $76.1 million. The company writes coverage in 14 states. 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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