• Nov. 29, 2006
• Aug. 23, 2006
• Aug. 3, 2006
Oriska Court Date Reportedly Set
(December 1, 2006) — An online trade news service is reporting a New York Supreme Court justice has scheduled the week of Feb. 13, 2007 to begin a trial to settle the future of financially troubled Oriska Insurance Co. Justice Robert Julian of the Fifth Judicial District in Oneida, according to WorkCompCentral, also extended the temporary receivership under which the insurer has operated under since August. The trial is to determine if Oriska will be forced into rehabilitation by the state Insurance Department.
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NY Supreme Court to Hear Oriska Future
(November 29, 2006) — Workcompcentral.com has reported a New York State Supreme Court justice will hear arguments beginning Nov. 29 to determine the immediate fate of Oriska Insurance Co. The court action will determine whether the Oriskany-based insurer will remain under the control of New York Insurance Superintendent Howard Mills.
An Aug. 22 decision by Justice Robert Julian of the Fifth Judicial District in Oneida County allowed Mills to take-over the financially ailing company. Mills received control shortly after federal agents served Oriska owner James Kernan and a real estate associate Robert Anderson, Jr. with a search warrant.
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Ceasefire Reached Between State, Oriska
(August 23, 2006) — Financially suspect Oriska Insurance Co. will remain under New York State Insurance Department supervision until Nov. 29, reports workcompcentral.com. In the interim, Insurance Department investigators and attorneys for the insurer will sort out financial records that Superintendent of Insurance Howard Mills says proves the insurer is insolvent, according to the online trade news service. A reported agreement between the two sides, however, allows the company’s management and employees to control daily operations.
Mills has sought to place Oriska under rehabilitation since filing a court petition in July. The petition cites state law that requires the company to maintain a surplus to policyholders of $2.2 million. State regulators claim the insurer has a deficit of $393,691. In late July, the state Supreme Court awarded temporary receivership of Oriska to the Insurance Department, but a hearing scheduled July 31 to allow the company’s attorneys to challenge the takeover was delayed after a judge recused himself from the case. On Aug. 9, state Supreme Court Justice Robert F. Julian confirmed to the Observer-Dispatch newspaper in Utica that he will preside over the next hearing date, which has yet to be rescheduled.
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Policyholders Due to Lose Coverage
(August 3, 2006) — A spokesman for the New York State Insurance Department told an industry online news service that financially troubled Oriska Insurance Co. will continue to meet its obligations and cover policyholder claims. The department does not expect anything new to develop until a court hearing is held, NYSID spokesman Andrew Mais told workcompcentral.com.
The Observer-Dispatch newspaper in Utica is reporting that the Insurance Department took control of the insurer after filing a court petition, alleging Oriska is insolvent. The petition cites state law that requires Oriska to maintain a surplus to policyholders of $2.2 million, but has a deficit of $393,691. Just prior to the state’s action, FBI agents searched the company’s two properties in Oriskany, reports the Observer-Dispatch.
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