THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Saturday, October 15, 1994 TAG: 9410150224
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: Associated Press
LENGTH: Short : 23 lines
The nation's leading insurer of new home warranties agreed Friday to an order giving state regulators control of the company until its financial troubles are solved or a buyer is found. The court order makes the State Corporation Commission the permanent receiver for HOW Insurance Co., based in Arlington. The SCC obtained a temporary injunction allowing it to seize the company Oct. 7. The company reported a capital and surplus base of $4.2 million, just above the $4 million required by state regulators. However, a consultant hired by the state estimated that HOW's liabilities, including its obligation to pay claims in the future, exceeded its assets by $47.9 million as of June 30. HOW insures the warranties of nearly 1 million homes across the country for a total of $110 billion. by CNB