Ambac Assurance's segregated account will not begin to make claims payments beginning in May because regulatory officials are not comfortable with the company's ability to pay claims, officials say.

The news came in separate statements issued April 22 by the company and the rehabilitator, the Wisconsin Department of Insurance.

"The rehabilitator is not satisfied that the conditions necessary for the plan to become effective have all been satisfied and believes that this decision is in the best interest of the policyholders," according to the regulator's statement.

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