Minn. probes WC carrier's investments. (Minnesota investigates workers' compensation carrier State Fund Mutual Insurance Co.)

National Underwriter Property & Casualty-Risk & Benefits Management, July, 1992 by Cox, Brian

Minnesota Insurance Commissioner Bert McKasy has launched an investigation into the investment practices which have left State Fund Mutual Ins. Co., the state's largest private insurer of workers' compensation, teetering on the brink of insolvency. "Basically I want to find out if there has been any violation of the law, or of prudent management practices," said Mr.

McKasy, who said the probe should be completed this month. Mr. McKasy placed the company under administrative supervision in May after finding its surplus was dangerously low. State Fund, which had a surplus of $17.3 million as of year-end 1991, suffered an estimated $14 million in losses since then due to investments in uninsured, interest-sensitive Federal National Mortgage Association...

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