S. CAROLINA NOT JOINING
FEDERAL ANTITRUST SUITCOLUMBIA, S.C. - South Carolina will not join the federal antitrust lawsuit against the insurance industry, the state insurance department reported.
Attorney General T. Travis Medlock, Consumer Advocate Steven W. Hamm and Insurance Commissioner John G. Richards recommended that the state participate in the litigation as a friend of the court only.
The lawsuit, brought by eight states in March, charged dozens of insurers with antitrust violations.
The department said the state did not suffer any damages as a result of the alleged boycott by insurers. Governmental entities are insured through a state insurance fund.
CALIF. PLACES INSURER
SAN FRANCISCO - Great Falls Insurance Co., a California firm providing primarily automobile insurance, has been placed under conservatorship by the California Department of Insurance.
Insurance Commissioner Roxani Gillespie has been appointed conservator. The conservation order issued in San Francisco Superior Court effectively puts the company under control of the Department of Insurance.
Ms. Gillespie petitioned the court on the grounds that the San Francisco- based insurer is insolvent. Its 1987 annual statement shows a deficit of $225,521.
Great Falls Insurance is licensed only in California, but conducted business in three other states as an approved surplus lines carrier.
VOTING DATE EXTENDED
FOR ASBESTOS FACILITY
PRINCETON, N.J. - The Asbestos Claims Facility's members decided to extend the ratification date for voting on the facility's proposed reorganization plan.
The date was moved to June 15 for U.S. members and June 30 for London members. The vote for dissolving the facility is scheduled for Sept. 1.
The tentative reorganization plan calls for the dissolution of the facility by Oct. 3 and the creation of a claims-handling organization.
The facility was set up as a way to reduce the costs of handling asbestos- related lawsuits. But the facility has been plagued with disagreements and withdrawals from its members.
COURT WON'T REVIEW
FLOOD INSURANCE RULING
WASHINGTON - The Supreme Court Monday refused to review a decision by the the Federal Emergency Management Agency denying flood insurance coverage for property damage due to earth movement that followed a flood.
The Seventh U.S. Circuit Court of Appeals upheld the denial, saying only mudslides or erosion are exempt from policy language in federally backed flood insurance policies that clearly state they will not pay damages for earth movements.
The agency paid claims for contents of the house involved but denied coverage for structural damage to the house itself.
TRAVELERS SEEKS BUYERS
FOR SOME OF ITS UNITS
HARTFORD, Conn. - Travelers Corp. has put several of its smaller units up for sale as part of a realignment of its business.
Scott Busnell, a company spokesman, said the sale is not part of the company's current cost-cutting program. Rather, he said, Travelers wants to focus on its core businesses.
The company will try to sell its surety, assumed reinsurance and certain excess and surplus lines businesses. Premiums for the surety and assumed reinsurance operations totaled $887.5 million last year. Premiums for the excess and surplus lines businesses were not available.
Wheeler H. Hess Jr., senior vice president of property/casualty, said the operations are profitable and well-managed.
Mr. Bushnell said the company has no timetable for selling its businesses.
He said Travelers will focus energy and resources on its insurance and
financial services core.
The three business have 484 employees and Travelers will try to sell the businesses intact to avoid job displacements, Mr. Bushnell said.