Union American Out of Rehabilitation
By E.E. Mazier
NU Online News Service, April 16, 2:17 p.m. EST?The Florida Department of Insurance said today that Union American Insurance Co. has been discharged from rehabilitation.
This makes the nonstandard automobile insurer, which is based in Miami and part of the AIB Insurance Group, the first Florida insurer to ever come out of rehabilitation, the department said.
Union American, founded and operated since 1984 by Cuban immigrant Jos? "Pepe" Alvarez, the company president, voluntarily stopped writing new business in February 2000.
In March 2000, Union American –which Standard & Poor's previously had found to have a vulnerable capital adequacy ratio due to a low liquidity level –agreed to be placed under administrative supervision in pursuant to a consent order. It then went into rehabilitation in June 2000 by order of the Circuit Court in Leon County, Fla.
As noted by the Florida Insurance Department, the Circuit Court in December 2001 approved the termination of the rehabilitation and ordered final discharge of the Insurance Department as receiver for Union American.
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