A Missouri state judge has placed National States Insurance Co. into rehabilitation and turned it over to regulators at the Missouri Department of Insurance.
Insurance Department Director John M. Huff has been named receiver of National States, St. Louis, allowing the department to take over operations of the company.
Huff says National States is in perilous financial condition, and the action is necessary to protect Missouri consumers who have long term care, life and Medicare Supplement insurance policies with the company.
The company’s board of directors has consented to the rehabilitation order; according to an announcement from the state DOI.
Rehabilitation protects policyholders by preserving the company’s assets. As the rehabilitator, the DOI assumes management of the company, attempts to correct problems, continues operations, maintains policyholder accounting and develops a plan of rehabilitation or petitions the court to liquidate the company.
The department is currently overseeing 13 insurance companies in rehabilitation or receivership, according to the announcement.