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Following Paula’s last call for writing workers’ compensation insurance Feb 28, happy hour is definitely now over. Word from the Department of Insurance April 26 is that Insurance Commissioner Harry Low has conserved Paula Insurance, Co. He applied for and was granted a conservation order from the Los Angeles County Superior Court.

The Pasadena-based insurer specialized in providing insurance products and services to the agribusiness market in California. With claims offices also in Fresno and Salinas, the Conservation and Liquidation Office staff has moved in to run all the operations under Low’s direction.

In its annual statement for 2001 (filed on March 1, 2002), Paula reported a negative policyholders surplus of $22,028,334, which meant the company was statutorily insolvent (pursuant to Insurance Code Section 985).

During conservation, all claims will be paid in full and on time without interruption in policyholder coverage.

Paula alluded to financial instability, Feb. 28, as a result of claims reserve development from claims relating to accident years 1997-1999 on California workers' compensation business.