FIRM BACKS SUPERIOR'S OBLIGATIONS QUACKENBUSH TAKES OVER WITH COURT OK.Byline: Chris Sieroty Staff Writer CALABASAS - Centre Insurance Co. will take over 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. obligations for Superior National Insurance Group, which was seized last week by the 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 , officials said Thursday. Under the terms of the deal reached Wednesday, New York-based Centre will pay off claims for Superior National if Superior runs out of money to meet those obligations, said department spokesman Scott Edelen. Centre will be Superior's reinsurance company for all claims received as of March 3, when the Calabasas-based workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. insurer was seized by state regulators because of concerns that it lacked the reserves to pay claims. ``This move further ensures that any workers' compensation claims incurred against the company will be paid,'' said Edelen. The agreement is also important to the department's efforts 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. Superior National, California's largest private-sector workers' compensation insurer, to make it more attractive to potential buyers, he said. Monday, Superior Court judges in Sacramento and Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. granted Insurance Commissioner Chuck Quackenbush's request to indefinitely take over the company. Superior National consists of five companies and had assets of $730 million and $240 million in premium income last year. Four of those companies - California Compensation Insurance Co., Combined Benefits Insurance Co., Superior National Insurance Co., and Superior Pacific Casualty Co. - are now being run by the state. New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of officials continue to investigate Superior National's fifth company, Commercial Insurance Co., Quackenbush said. Customers with questions about coverage or policies with Superior National can contact the Department of Insurance Consumer Hotline at (800) 927-HELP or (213) 897-8921. |
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