Booker T. Washington Insurance Company voluntarily submitted to being placed into receivership late Wednesday in Jefferson County Circuit Court, Commissioner Walter A. Bell announced today.
“I am pleased with the leadership of Booker T. Washington Insurance Company for working with us on this step,” Commissioner Bell said. “We will all work together with the aim of rehabilitating this company.”
An examination of Booker T. Washington by the Alabama Department of Insurance revealed that the company is insolvent by $4.3 million.
However, the Department says consumer’s claims will continue to be paid and that policyholders should continue to pay premiums in order to guarantee coverage.Company officers and Insurance Department attorneys appeared together in court asking for a receivership order.
The company is now placed in the hands of the Receiver of the Alabama Department of Insurance. Denise B. Azar is the Receiver. She will serve as the court-appointed administrator of the company until it is rehabilitated or liquidated.
“I am hopeful that we can rehabilitate this company and am eager to work with company officials to do so,” Ms. Azar said. “The cooperation that we have received from the management team has been outstanding in this very important time.”