Ohio Takes Over Credit General.

Credit General Insurance Co. has been placed in rehabilitation by the Ohio Department of Insurance, which said it is in talks to sell the company.

Ohio regulators said they uncovered potential criminal actions by Credit General and its officers and are sharing information with law-enforcement officials. Regulators said the company is insolvent, funds have been diverted from it and false financial reports have been filed on the company's behalf.

Credit General said it had gotten a cut-through reinsurance agreement with Amtrust Financial Group in September. The reinsurance agreement was supposed to give Credit General access to $20 million of additional surplus, the company said.

But regulators said reinsurers of the company had failed to pay their share of the company's claims.