Two property-casualty insurers, who recently stopped writing business in Virginia, had their certificates to operate in Arkansas suspended by regulators, citing their negative surplus balance.

Jay Bradford

In a pair of orders, Arkansas Insurance Commissioner Jay Bradford suspended the licenses of Atlantic Mutual Insurance Co. and Centennial Insurance Co., both domiciled in New York. The orders note that both companies were authorized to sell property, casualty (including workers’ compensation), surety, marine and accident insurance in Arkansas.

As of Dec. 31, 2009, Atlantic Mutual had a total surplus of minus-$25,106,505 and Centennial had a surplus of minus-$2,029,752, according to Arkansas officials.

Based on that surplus amount, Bradford noted, neither company meets the requirements under state law for the authority to sell policies originally granted.

Both insurers were ordered to cease writing all new or renewal direct business in Arkansas, as well as new policies, according to the orders. The insurers are prohibited from assuming any additional risk on the state.

The suspensions will continue until Bradford makes a further determination on both companies, according to his department.

In December 2009, officials with the Virginia State Corporation Commission Bureau of Insurance announced that both companies agreed to suspend business voluntarily following a request by the bureau based on “ financial regulatory concerns.”

A request for comment from Atlantic Mutual and Centennial was not immediately returned to IFAwebnews.com.