United Home Insurance Co. placed in receivership
by September 10, 2023 6:46 am 4,761 views
Paragould-based United Home Insurance Co. was placed in receivership by the Pulaski County Circuit Court on Wednesday, Sept. 6, 2023. The court appointed Arkansas Insurance Commissioner Alan McClain and his successors in office as the Receiver. United Home consented to the receivership which does not apply to United Home’s affiliate, Farmers Home Mutual Insurance Co.
An insurance company is placed in receivership when it becomes impaired, insolvent, in unsound condition, or its further transaction of business would be hazardous to its policyholders. Under the order of rehabilitation, the Arkansas Insurance Commissioner will take possession of United Home’s property, conduct business, and take steps to rehabilitate the business as the circuit court directs.
As rehabilitator, McClain will appoint others to assist in the rehabilitation proceedings. If rehabilitation is not feasible, the commissioner will petition the Pulaski County Circuit Court for an order of liquidation.
United Home’s rehabilitation proceeding is the result of a decline in the company’s financial condition due to substantial weather-related losses.
“Recent natural disasters have had a devastating effect on businesses throughout the state and the nation, and unfortunately the insurance industry is not immune,” McClain said. “Our goal with this process is to make sure that the company’s policyholders with outstanding claims get the money they need and deserve. If you have a policy with United Home, you are still insured and you can still file a claim.”
Those who have policies with United Home Insurance will see their policies continue pursuant to their terms and conditions and claims can be submitted as usual. To avoid a gap in coverage, policyholders must continue to pay monthly premiums when due.
United Home Insurance Company is a family-owned personal lines carrier and has been in business for more than 100 years. The company is licensed to do business in nine states, but currently writes business only in Arkansas, Kentucky, Missouri, Oklahoma, and Tennessee.