South Dakota Moves to Liquidate Surety Insurer ReliaMax
ReliaMax Surety Co. has been placed into liquidation by the South Dakota Division of Insurance.
The South Dakota DOI petitioned the Hughes County Circuit Court on June 12, 2018, to place ReliaMax into liquidation due to insolvency. Judge Patricia J. DeVaney approved the petition on June 27, 2018. Division of Insurance Director Larry Deiter was appointed as the liquidator and receiver of the company’s estate.
The Sioux Falls, South Dakota-based insurance company writes surety bonds covering student loan repayment to financial institutions throughout the U.S.
The court’s order approving Dieter’s petition for liquidation stated that reports and exhibits submitted by ReliaMax showed the company was in “hazardous financial condition.”
Deiter says having the order in place allows the division to provide protection to affected policyholders by preserving company assets for claims payment.
The liquidation order directs the liquidator to take possession of ReliaMax and to safeguard its property. It also instructs the liquidator to conduct the insurer’s business in the interim while taking the steps needed to bring ReliaMax’s business to an end.
“The next step of the process includes notifying policy holders, claimants and other interested parties of the liquidation status and providing established procedures to file claims,” Deiter said in the division’s announcement.