Regulator orders insurer to stop all business operations to protect policyholders
News: 2018 Press Release
SACRAMENTO, Calif. — Insurance Commissioner Jones yesterday issued a Cease and Desist Order against Access Insurance Company, which requires the company to immediately stop transacting, soliciting, negotiating, or administering and writing any new or renewal insurance business of any kind in the state of California.
The Order alleges the company is conducting business in a manner that threatens to render it insolvent or in a financially hazardous condition in violation of the California Insurance Code.
"I have taken this action to protect consumers from buying insurance from a company unable to demonstrate it has the assets and capital to sustain its business as an insurer," said Insurance Commissioner Dave Jones. "As insurance commissioner, my first priority is protecting consumers and the integrity of the insurance marketplace—that includes making sure insurers are able to deliver on their promises to consumers."
The commissioner's action followed Access's Statutory Income Statement 2017 Preliminary (unaudited), which showed its policyholder surplus was negative $27.6 million as of December 31, 2017, and its Statutory Income statement 2018 Preliminary (unaudited) report noted its policyholder surplus was a negative $29 million as of January 31, 2018, and after the company also failed to file its required yearly statutory statement.
Access Insurance Company's unaudited financial reports indicated the company failed to maintain the capital required by law and the insurance commissioner is authorized to place Access Insurance Company under regulatory control, which could result in the company being subject to conservation or liquidation proceedings. Irreparable loss and injury to the property and business of the company has occurred or may occur unless the commissioner acted immediately to correct, eliminate, and remedy such conduct and conditions.
- A public hearing will be held on March 28, 2018 at 10:00 a.m. at the Department of Insurance in San Francisco to determine the matters set forth in the ORDER TO CEASE AND DESIST.
- A separate Order to Show Cause, Accusation, and Notice of Non-Compliance were filed in July 2017 charging Access Insurance Company and some of its affiliates with engaging in improper claims handling and improper rating and underwriting practices in violation of the California Insurance Code and the Fair Claims Settlement Regulations. These actions are still pending.
- August 2, 2017 news release on department action against Access.
- January 23, 2018 news release on department action against Access.
- The department urges Access policyholders with questions or concerns to contact the Consumer Hotline at 1-800-927-4357.
Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.