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Video Broadcast Intercare First in Line at Paula Swap Meet Runtime 1:43 Real Media 56k | Broadband Windows Media Player 56k | Broadband Quicktime 56k | Broadband

The future didn’t look good for Paula Insurance when California Insurance Commissioner Harry Low conserved the company April 26 after it reported a negative $22 million policyholder surplus. Mathematically the cards were stacked against Paula to mount a comeback from that far in the red in a market where any black on the books for workers’ compensation is an anomaly.

Speculations became a reality Friday when Low obtained an order of liquidation for Paula Insurance, which gave the commissioner the power to prepare for a Paula swap meet.

Rehabilitation was ruled out because Low couldn’t find a sufficient amount of assets to soften the impact of Paula’s financial condition.

In the Pasadena home office the claims landscape has changed recently. Victor Gloria, vice president of claims, Jim Hurley, assistant vice president of claims and Supervisor Kathy Garcia are no longer with the company.

Supervisor Terry Garibay is the current chief of claims.

Although not officially announced, Intercare Insurance Services has been handling Paula’s claims recently. Intercare representatives wouldn’t or couldn’t confirm any of the details, but Paula employees have reported that offers from Intercare were extended to them.

Nanci Kramer, deputy press secretary for the Department of Insurance (DOI) confirmed that what employees remained handling Paula’s claims were hired by Intercare. The arrangement was made between Paula Financial and Intercare to ensure a smooth transition until the California Insurance Guarantee Association (CIGA) could take over, Kramer told adjustercom.com.

The next step said Kramer would be for Conservation and Liquidation Office (CLO) to settle the Paula Insurance estate. With the new administrative organization at the CLO, estates should be settled in a timelier manner than in the past, she explained.

Kramer attributed the increase in efficiency to Low’s move to appoint Lauren Seuter as the chief executive officer of the Conservation and Liquidation Office (CLO). This freed up Harry LeVine to serve as special counsel to the commissioner. The reorganization separated the duties of administration and legal interpretation that had traditionally bogged down the process, she explained.