S&P Assigns ‘R’ Rating to First Nevada Insurance Co.

Standard & Poor’s assigned its ‘R’ financial strength rating to First Nevada Insurance Co. (FNIC). Standard & Poor’s took this rating action after learning that Judge Janet Berry of the Second Judicial District Court of the State of Nevada issued an order placing FNIC into liquidation. The order was in response to a motion filed by Nevada Insurance Commissioner Alice A. Molasky-Arman as the court found FNIC to be statutorily insolvent and unable to be rehabilitated.

FNIC, licensed only in Nevada, organized as a Nevada corporation in 1995 and received its certificate of authority as a property/casualty insurer from the Nevada Division of Insurance in June 1995.

An insurer rated ‘R’ is under regulatory supervision owing to its financial condition. During the pendency of the regulatory supervision, the regulators may have the power to favor one class of obligations over others or pay some obligations and not others. The rating does not apply to insurers subject only to non-financial actions such as market conduct violations.