Commissioner Quackenbush demands return of $69 million to Golden Eagle/Mesa Reinsurance.SAN DIEGO--(BUSINESS WIRE)--Feb. 24, 1997-- Half Million Dollars' Worth of Former Golden Eagle Luxury Cars Seized; Liberty Mutual to Provide Financial Stability Commissioner Quackenbush demanded today that the millions of dollars, including interest, in unsecured loans Unsecured Loan A loan that is issued and supported only by the borrower's creditworthiness, rather than by some sort of collateral. Notes: Generally, a borrower must have a high credit rating to receive an unsecured loan. owed to Golden Eagle/Mesa 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. by John Mabee, the former owner of both companies, be repaid. On Jan. 31, 1997, Commissioner Quackenbush served a court order to take over control and operation of Golden Eagle Insurance Company. The order also included putting Mesa Reinsurance into the conservatorship Conservatorship A circumstance in which the court declares an individual unable to take care of legal matters and appoints another individual, known as a conservator, to do so. Notes: This is sometimes referred to as "LPS Conservatorship. . Commissioner Quackenbush was particularly concerned about the $66 million in unsecured loans taken by John Mabee. Investigators learned that the original indication of $66 million has increased to $69 million. "My first concern is for the consumers, policyholders, and claimants of Golden Eagle. That is why I am issuing a demand letter requiring that Mr. Mabee return the $69 million he owes Mesa Reinsurance so that it will be available to Golden Eagle policyholders. If that demand is not met, I am prepared to file a lawsuit to recover the millions of missing dollars," said Commissioner Quackenbush. "I intend to go after every nickel of the $69 million owed by Mr. Mabee and return it back to the company." As part of the takeover by the Department of Insurance, half a million dollars' worth of imported luxury automobiles owned by Golden Eagle Insurance Company and used by former upper-management have been repossessed. One of the luxury cars seized is a 12-cylinder Mercedes Benz Mercedes Benz expensive automobile and status symbol. [Trademarks: Crowley Trade, 368] See : Luxury , equipped with bullet-proof windows. The cars will be sold and the proceeds will go directly to the companies now under conservatorship. "Excessive spending in the form of luxury cars and the $69 million in personal loans is no way to operate an insurance company in California," Commissioner Quackenbush said. Additionally, Commissioner Quackenbush announced that he has signed an agreement with Liberty Mutual Group which will provide financial stability and enhanced safety for policyholders of Golden Eagle Insurance Company, as well as a continued market for its agents and brokers. Under the terms of the reinsurance agreement, Liberty Mutual will assume 100% of all losses on virtually all new and renewal policies issued by Golden Eagle from March 1, 1997, until the completion of the rehabilitation rehabilitation: see physical therapy. plan. "This historic agreement means that Golden Eagle policyholders can rest easier knowing their claims will be backed by Liberty Mutual, a company with over $5 billion in surplus," said Commissioner Quackenbush. Commissioner Quackenbush also announced that he issued a Request for Proposals (RFP (Request For Proposal) A document that invites a vendor to submit a bid for hardware, software and/or services. It may provide a general or very detailed specification of the system. 1. (business) RFP - Request for Proposal. 2. ) for a Rehabilitation Plan for Golden Eagle. "Due to the increasing number of parties expressing an interest in this transaction, it is necessary to establish a standardized process by which companies can develop and submit their proposals," said Commissioner Quackenbush. The RFP details the factors that will be considered by the Commissioner when evaluating the Rehabilitation Plan proposals. Those factors include the extent to which the proposal commits to a continued company in San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. and the employment of current Golden Eagle employees. Copies of the RFP can be obtained by writing to Deputy Conservator conservator n. a guardian and protector appointed by a judge to protect and manage the financial affairs and/or the person's daily life due to physical or mental limitations or old age. , Karl Rubinstein, Office of the Conservator, 7175 Navajo Road, San Diego, CA 92119. CONTACT: California Department of Insurance The California Department of Insurance (CDI), established in 1868, is the angency charged with overseeing the regulation of insurance regulations, enforcing statutes mandating consumer protections, educating consumers, and fostering the stability of insurance markets in the state Dana Spurrier Spur´ri`er n. 1. One whose occupation is to make spurs. : 916/492-3566 or Pager: 888/276-4269 |
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