National States Insurance has found
itself among a growing number of small US insurers to be rescued
from the brink of collapse following the Missouri Department of
Insurance’s (MDI) decision to place it into rehabilitation.
In a statement, MDI director John
Huff termed National State’s financial condition as being
“hazardous.”
Go deeper with GlobalData
Under rehabilitation, the MIL
assumes management of an insurer’s continued operations and
attempts to correct problems, failing which it petitions a court
for the insurer’s liquidation. The MDI is currently overseeing 13
insurance companies in rehabilitation or receivership status.
According to National State’s
website, it was founded 1964, provides life, health and long term
care insurance and is licensed to do business in 37 states. The MIL
noted that the cause of National State’s financial problems were
long-term care policies sold in Florida.
National State reported losses of
$5.6m in 2008 and $6.7m in the first nine months of 2009.
