A.M. Best Co. announced that it has placed the financial strength rating of B++ (Very Good) of Nodak Mutual Group (Fargo, ND) under review with negative implications.
“The rating action reflects the September 23, 2002, announcement by the North Dakota Department of Insurance placing Nodak Mutual Insurance Company under administrative supervision,” said the announcement.
Best’s bulletin noted that the order was unrelated to the company’s financial stability, but had been made at the request of its senior management in order to resolve an ongoing dispute with Nodak’s Board of Directors.
According to the rating agency the negative implications of the “under review status” are due to the the uncertainties associated with the future direction of the group.” It noted that under the administrative order the Insurance Department must grant prior approval of any “material transactions of Nodak Mutual’s management.”
Best said it would keep the Group, which includes American West Insurance Company “under review pending the completion of the Department’s investigation and A.M. Best’s discussions with management.”
Topics AM Best
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