Posted on 05/06/2011 9:18:27 PM PDT by george76
After 173 years, insurer swamped by wave of workers’ comp claims.
Atlantic Mutual Insurance Co. managed to pay out claims when the legendary Titanic passenger liner sank in April 1912, but the insurer couldn’t survive a wave of workers’ compensation claims, industry publication BestWire reported Friday.
The company was placed into liquidation and New York’s superintendent of insurance was appointed liquidator on April 27, according to the website of the New York Liquidation Bureau.
Atlantic Mutual Insurance was incorporated under the laws of the state of New York on April 11, 1842.
...
Workers’ compensation insurance covers the cost of medical care, lost wages and rehabilitation for on-the-job injuries and provides benefits for the family of any employee killed in work-related accidents.
The workers’ comp market in California has been plagued by intense competition, spiraling medical costs, fraud and abuse for many years. More than 20 firms in the business either went bust or left the state from 2000 to 2003.
The 2008 financial crisis and recession, which hit the Golden State particularly hard, may have created more problems because high unemployment can fuel more claims for workers’ compensation.
...
The liquidation that began in April will let the New York state insurance department wind up the company’s affairs by selling its assets and settling claims upon those assets
(Excerpt) Read more at marketwatch.com ...
There has been no comment about this or impact on the market for over a week?
This is the first that I have seen
There is a definite analogy here somewhere. Some would say the current administration is captaining the Titanic straight toward the iceberg (or even whistling after we’ve already hit it).
I used to work for a troubled company that employed Atlantic Mutual - 1990’s.
Back then, they were a really class act, yet, I have not kept up with their current situation!
Hope all works out OK, but it doesn’t seem so.
Many firms will go bust under ObamaCare and Dodd-Frank
Banks are failing by the droves...what’s next?
Answer: Insurance companies.
No one dares to think that their life insurance could possibly become worthless if our economy fails, but it will certainly do so.
While the “sheeple” fret and worry about the FDIC coverage on their bank holdings, they don’t even worry about all of that money they put into their life insurance policies...THAT IS NOT INSURED BY ANY ONE!
The diverse population and deadbeats have learned how to manipulate the workman’s compensation issue and bleed it to death. Tecumseh built a nice facility in Corinth and after two years experienced the highest workman’s compensation claims than all of their other plants combined. The plant had to close and move their production elsewhere in order to remain solvent. We now have a nice large building with nobody using it. Lawyers and deadbeats have formed a lethal combination to free enterprise and hard work.
It’s a little harder to advance false claims for life insurance.
Workers comp is a way of life for some . . . just like welfare is a way of life for others. I’ve heard the term ‘cleptocracy’ to describe a thieving political class. How do you describe a nation where a plurality steals what they can from their neighbors? A ‘cleptpopulace’?
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