Access Insurance Company ordered to stop business in California
California’s insurance commissioner has issued a Cease and Desist Order against Access Insurance Company, which requires the company to immediately stop transacting, soliciting, negotiating, or administering and writing any new or renewal insurance business of any kind in the state of California.
The order alleges the company is conducting business in a manner that threatens to render it insolvent or in a financially hazardous condition in violation of the California Insurance Code.
"I have taken this action to protect consumers from buying insurance from a company unable to demonstrate it has the assets and capital to sustain its business as an insurer," said insurance commissioner Dave Jones. "As insurance commissioner, my first priority is protecting consumers and the integrity of the insurance marketplace-that includes making sure insurers are able to deliver on their promises to consumers."
The commissioner's action followed Access's Statutory Income Statement 2017 Preliminary (unaudited), which showed its policyholder surplus was negative $27.6 million as of Dec. 31, 2017, and its statutory income statement 2018 preliminary (unaudited) report noted its policyholder surplus was a negative $29 million as of Jan. 31, 2018, and after the company also failed to file its required yearly statutory statement.
Access Insurance Company's unaudited financial reports indicated the company failed to maintain the capital required by law and the insurance commissioner is authorized to place Access Insurance Company under regulatory control, which could result in the company being subject to conservation or liquidation proceedings. Irreparable loss and injury to the property and business of the company has occurred or may occur unless the commissioner acted immediately to correct, eliminate, and remedy such conduct and conditions.
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