Heat turned up notch on embattled EMLICO
Co., and its reinsurers received summonses from the Massachusetts Division of Insurance ordering the companies to produce any documents "pertaining to alleged misrepresentations'' of EMLICO's financial health, the Boston Globe reported in its "Boston Capital'' column.
Regulators issued the summonses last week as scrutiny increases concerning EMLICO, which declared itself insolvent after relocating last year with the state's approval to Bermuda from Massachusetts. Massachusetts Insurance Commissioner Linda Ruthardt is also considering the request of Kemper Reinsurance Co., which has fought to reverse EMLICO's move, to reopen the case, the Globe reported.
EMLICO, a mutual liability insurance company whose only customer is GE, has said that it disclosed to insurance regulators before approval was granted last summer that it was considering filing for insolvency. -- Bloomberg
