Business Services Industry
Frontier rehabilitator suing MGA over fronted business.(News)(MGA Group L.L.C., Frontier Insurance Group Inc.)
Business Insurance, May, 2004
Byline: DOUGLAS McLEOD NEW YORK-The rehabilitator of Frontier Insurance Co. is suing a California managing general agency, charging that the MGA withheld millions of dollars of premiums and failed to adequately fund a workers compensation rent-a-captive program for agribusiness clients. New York insurance regulators rehabilitating Frontier filed the suit in a New York federal court against Roseville, Calif.-based Dwight Halvorson Insurance Services Inc.
and an affiliated MGA, Food Service Insurance Managers Inc. FSIM managed a workers comp program for food service companies that was fronted by Frontier and reinsured under a rent-a-captive arrangement with Bermuda-based Platinum Indemnity Ltd., court filings say. Since taking over Rock Hill, N.Y.-based...
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