Arkansas Suspends License of 2 New York-based Insurers

Arkansas Insurance Commissioner Jay Bradford on March 11 suspended the certificates of authority to conduct insurance business of two New York domiciled property and casualty insurance companies: Centennial Insurance Company and Atlantic Mutual Insurance Company.

According to the commissioner’s orders of suspension, both companies no longer meet the capital and surplus requirements needed in order to do business in Arkansas.

Centennial’s surplus as of Dec. 31, 2009, was a negative $2,029,752, and Atlantic Mutual had a negative surplus of more than $25.1 million, according to the commissioner’s order.

Both companies had been authorized to sell property, casualty, marine, and accident and health insurance. Both were ordered to cease writing all new and renewal business in Arkansas.

The Atlantic Companies, also known as Atlantic Mutual, sold its high-net-worth personal lines insurance business to The ACE Group of Companies in late 2007.

Source: Arkansas Insurance Department