On January 31, Golden Eagle Insurance Company was seized by California Insurance Commissioner Chuck Quackenbush. “Certain business practices by the management of Golden Eagle Insurance Company have put both the company and consumers at risk. This Court-ordered takeover is necessary to ensure that policyholder claims will be paid,” Commissioner Quackenbush said.

Golden Eagle Insurance Company is the third largest workers’ compensation insurer in California. Golden Eagle was seized by the state following a dispute over bookkeeping, the company’s reserve amount and unsecured loans taken out by John Mabee, the company’s founder. Despite the fact that Golden Eagle’s cash reserves fell $138.5 million short of the cash reserves required by the State of California, John Mabee took out $66 million in unsecured loans.

The business of Golden Eagle will be continued by San Diego Casualty, a new firm created to service policyholders whose insurance claims were jeopardized by John Mabee’s mismanagement and shady business practices.

Reference: Vol. 34, No. 1 - UHCA Newsletter Highway - wingsclip