Fremont Claims Chilling up North By Robert Warne - January 8, 2004
California isn’t the only state that got stiffed by Fremont Indemnity’s insolvency last July.
It turns out that the state of Alaska got more than a mild case of claims frostbite from the failed carrier after a California judge determined the company was insolvent.
The insolvency has been a wakeup call for the state’s officials who are now struggling to diplomatically figure out how to dig themselves out of the $60 million landslide of claims Fremont left them buried under.
Fremont had been a big player in Alaska’s work comp market up until 2001 and at one time had a 27 percent corner on the market, according to the Fairbanks Daily News-Miner.
Reportedly the Alaska Insurance Guaranty Association wasn’t prepared for such an onslaught of claims so it was forced in Septemeber to hike it’s surcharge up to the maximum two percent on all work comp premiums.
The Legislature is also working out a way to get a loan to fund the claims and trying to figure out how to attract more carriers to the state so that they don’t get caught in a blizzard of claims ever time dark clouds form over one carrier.
Adjuster / Examiner Claims Examiner Santa Ana Unified School District Santa Ana, CA
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