Wash. Insurer Ordered Into Receivership

Washington Insurance Commissioner Mike Kreidler has assumed control of Cascade National Insurance Company of Bellevue under authority of a Thurston County Superior Court order placing the company in receivership.

The company has experienced periodic financial problems during the past several years and has been under the scrutiny of the Office of the Insurance Commissioner (OIC). Recently, the financial problems have reportedly become more acute.

The court action was intended to protect policyholders and to ensure that the property and casualty insurer meets its responsibilities and obligations under state law.

“Assuming control and operation of a company isn’t an action that I take lightly,” Kreidler said. “But at the same time, the OIC is prepared to execute its duty and responsibility under state law to protect consumers.”

Kreidler, who was named statutory receiver in the court order, appointed Deputy Receiver Marshall McGinnis to handle the day-to-day operation of the company. Kreidler assured policyholders that their coverage would remain in effect as long as their premiums were paid and current.

He indicated that the company would continue operating under OIC control while its financial condition is assessed.

Cascade National sells property and casualty products in Washington, Oregon, Alaska, California, Mississippi and Louisiana. It also markets workers’ compensation coverage in California.