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If your using RRG's here is a little food for thought. They said they had 42 million in assets when in fact it was 609k...
MONTPELIER, Vt. - (Information has been added to the headline for
clarity and the final line removed.) A Vermont Superior Court judge has
approved a request by the Vermont Department of Financial
Regulation to issue an order liquidating Global Hawk Insurance Co.
Judge Timothy Tomasi last month signed the order after the
department found the company, a risk retention group domiciled in
Vermont, was insolvent and that rehabilitation would be futile.
According to the state’s petition for liquidation, Global Hawk at the end
of 2019 reported having assets of $42.7 million, including cash and
invested assets of $36.7 million, and liabilities of $34.9 million.
But in reviewing records from institutions holding Global Hawk’s funds,
the department petition said the company had cash and invested
assets at that time of $609,489.
By April 30, the company had 224 open cases and case reserves
totaled $11.9 million — a figure 10 times greater than its liquid assets,
it said. Global Hawk’s financial condition was even worse, it said, since
that figure did not include losses incurred but not yet reported.
By that point, the company, which provided coverage to small trucking
firms, mostly in California, had issued policies covering 1,008 trucks, it
said.The company had become so deeply insolvent, the petition said, that
those 1,008 trucks were “effectively uninsured.”
The department said it would be reasonable to assume that the truck
operators could not pay losses out of their own pockets, and moved
quickly so they could find new coverage.
In the liquidation, management of claims by Global Hawk have ceased
and each member became responsible for claims management and
paying all defense costs, the liquidation order said.
“Global Hawk RRG members and other claimants will be required to
file claims in the liquidation and await a distribution of Global Hawk
RRG’s assets, possibly years from now,” it said.
Global Hawk began operation in 2003 in South Carolina and
redomiciled to Vermont in 2009, the petition said.
An attempt to obtain further comment from Global Hawk was
unsuccessful.
(By Timothy Darragh, associate editor, BestWeek:
[email protected])
MONTPELIER, Vt. - (Information has been added to the headline for
clarity and the final line removed.) A Vermont Superior Court judge has
approved a request by the Vermont Department of Financial
Regulation to issue an order liquidating Global Hawk Insurance Co.
Judge Timothy Tomasi last month signed the order after the
department found the company, a risk retention group domiciled in
Vermont, was insolvent and that rehabilitation would be futile.
According to the state’s petition for liquidation, Global Hawk at the end
of 2019 reported having assets of $42.7 million, including cash and
invested assets of $36.7 million, and liabilities of $34.9 million.
But in reviewing records from institutions holding Global Hawk’s funds,
the department petition said the company had cash and invested
assets at that time of $609,489.
By April 30, the company had 224 open cases and case reserves
totaled $11.9 million — a figure 10 times greater than its liquid assets,
it said. Global Hawk’s financial condition was even worse, it said, since
that figure did not include losses incurred but not yet reported.
By that point, the company, which provided coverage to small trucking
firms, mostly in California, had issued policies covering 1,008 trucks, it
said.The company had become so deeply insolvent, the petition said, that
those 1,008 trucks were “effectively uninsured.”
The department said it would be reasonable to assume that the truck
operators could not pay losses out of their own pockets, and moved
quickly so they could find new coverage.
In the liquidation, management of claims by Global Hawk have ceased
and each member became responsible for claims management and
paying all defense costs, the liquidation order said.
“Global Hawk RRG members and other claimants will be required to
file claims in the liquidation and await a distribution of Global Hawk
RRG’s assets, possibly years from now,” it said.
Global Hawk began operation in 2003 in South Carolina and
redomiciled to Vermont in 2009, the petition said.
An attempt to obtain further comment from Global Hawk was
unsuccessful.
(By Timothy Darragh, associate editor, BestWeek:
[email protected])
