Auto insurance company ordered liquidated

Auto insurance company ordered liquidated

COMPLAINTS from auto insurance policy holders have led to the forced liquidation of a Panama based insurance company company.

Ths Superintendency of Insurance has ordered   Seguros Constitución liquidated. The regulator took control of the company Aug. 4 due to financial and administrative breaches. The action was taken after receiving complaints from policyholders and brokers about auto policies issued by the insurer.

Superintendent Jose Joaquin Riesen said that the company was operating without the backing of reinsurers, something that was required.

The liquidation process must be completed within six months, but Riesen said that the intention is to complete the process much sooner than that.

A liquidation board will be responsible for completing the sale of the assets of the company to meet its obligations.

The company’s main shareholders are from Venezuela. At the end of September, it was the 25th-largest insurance company in Panama with $3.5 million in policies.

–