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California to liquidate insurer after 'significant' wildfire losses

Written by Jasir Jawaid

The California Department of Insurance has filed a petition to liquidate Merced Property & Casualty Co. after it suffered "significant losses" from the Camp Fire in California.

The company's financial condition deteriorated rapidly after multiple total losses and mounting claims, the department said. After a review of Merced's financial records, the regulator concluded that it was insolvent, that it did not have sufficient liquid assets to pay its liabilities as they became due and that further efforts to rehabilitate the company would not be feasible.

The Superior Court of the State of California, County of Merced is expected to enter an order Dec. 3 appointing Insurance Commissioner Dave Jones liquidator.

This article was published by S&P Global Market Intelligence on the S&P Capital IQ Pro platform.


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