State regulators are taking legal steps to place the troubled Oklahoma City-based insurance company BancInsure into receivership because of its poor financial health.
However, BancInsure president and CEO Lisa Bays said Tuesday that the company is taking steps to shore up its finances under new ownership and is confident the state will not have to take over the company.
“The long-range plans of BancInsure are to recapitalize and move forward with new business and rebuild the insurance company,” Bays said.
An Oklahoma County District Court judge on Monday granted the Oklahoma Insurance Department an injunction barring BancInsure from disposing of any of its assets. A court hearing is scheduled for May 14 to determine whether to place BancInsure into receivership.
In court documents, Oklahoma Insurance Commissioner John Doak claims BancInsure is insolvent and its continued operation would be hazardous to the public, policyholders and to its creditors.
Doak has asked BancInsure to show cause to the court why the company should not be placed into a state receivership.
“As Insurance Commissioner, it is my job to protect policyholders,” Doak said in a statement. “I will use whatever means necessary, including litigation, to enforce my regulatory responsibilities and make sure that insurance companies operating in the state of Oklahoma are financially sound.”
The long-range plans of BancInsure are to recapitalize and move forward with new business and rebuild the insurance company.”
BancInsure president and CEO