FEBRUARY 10, 2000
FOR IMMEDIATE RELEASE
CONTACT: CHRISTOPHER GOETCHEUS
TRUST INSURANCE COMPANY AND TRUST ASSURANCE COMPANY
PLACED IN REHABILITATION
Commissioner Ruthardt cites need to protect policyholders and
conserve the assets of the companies
(Boston, MA) Commissioner of Insurance Linda L. Ruthardt announced today that the Massachusetts Supreme Judicial Court for Suffolk County (SJC) granted her motion to place Trust Insurance Company and its subsidiary, Trust Assurance Company, in rehabilitation and to appoint her temporary receiver. Trust has its headquarters in Taunton, Massachusetts. The action was taken by the Division of Insurance for the purposes of conservation and rehabilitation of Trust, and was agreed to by the Company.
The SJC order authorizes the Receiver to administer the property and assets of Trust under its general supervision. Commissioner Ruthardt noted that during the term of the temporary receivership, Trust is expected to continue to meet its obligations in the normal course of business. The Court's order has afforded administrative expense priority to claims which occur on or after the date of the order and to claims for unearned premium and agents' commissions with respect to policies in force as of the date of the order or renewed thereafter.
Pursuant to an examination by the Division of Insurance and due to Trust's failure to file audited financial statements as required by law, the Commissioner determined that the financial statements of both insurers were deficient. Commissioner Ruthardt said, "I believe that Trust's surplus has dropped below an acceptable level. We have taken control of these companies in order to protect the interests of their policyholders and other creditors. We will promptly determine the available options, and plan to report our recommendation to the SJC within sixty days. During this period we will also determine whether Trust or its material assets may be sold." All policies in force and in good standing will remain in effect during the period of rehabilitation.
Trust Insurance Company and Trust Assurance Company are both stock insurance companies domiciled in the Commonwealth. Trust Insurance is also licensed in New Hampshire and Rhode Island. The Companies sell various forms of property and casualty insurance, including automobile, homeowners and commercial insurance.
Policyholders may call the Division's Consumer Help Line at (617) 521-7777 for regular updates on Trust.