September 8, 2023
FOR IMMEDIATE RELEASE
Zoë Calkins, Arkansas Department of Commerce
United Home Insurance Company placed in receivership
LITTLE ROCK, Ark. – United Home Insurance Company (“United Home”) was placed in receivership for the purpose of its rehabilitation by the Pulaski County Circuit Court on Wednesday, Sept. 6, 2023. The court appointed Arkansas Insurance Commissioner Alan McClain and his successors in office as the Receiver. United Home consented to the receivership which does not apply to United Home’s affiliate, Farmers Home Mutual Insurance Company.
An insurance company is placed in receivership when it becomes impaired, insolvent, in unsound condition, or its further transaction of business would be hazardous to its policyholders. Under the order of rehabilitation, the Arkansas Insurance Commissioner will take possession of United Home’s property, conduct business, and take steps to rehabilitate the business as the circuit court directs. As rehabilitator, McClain will appoint others to assist in the rehabilitation proceedings.
United Home’s rehabilitation proceeding is the result of a decline in the company’s financial condition due to substantial weather-related losses. As rehabilitator, the Arkansas Insurance Commissioner will assume management of United Home, attempt to correct existing problems, continue operations, and develop a plan of rehabilitation. If rehabilitation is not feasible, the commissioner will petition the Pulaski County Circuit Court for an order of liquidation.
“Recent natural disasters have had a devastating effect on businesses throughout the state and the nation, and unfortunately the insurance industry is not immune,” McClain said. “Our goal with this process is to make sure that the company’s policyholders with outstanding claims get the money they need and deserve. If you have a policy with United Home, you are still insured and you can still file a claim.”
Those who have policies with United Home Insurance will see their policies continue pursuant to their terms and conditions and claims can be submitted as usual. To avoid a gap in coverage, policyholders must continue to pay monthly premiums when due.
United Home Insurance Company is a family-owned personal lines carrier and has been in business in Paragould, Arkansas for more than 100 years. The company is licensed to do business in nine states, but currently writes business only in Arkansas, Kentucky, Missouri, Oklahoma, and Tennessee.
For questions about the rehabilitation, policyholders, claimants, agents, brokers, or attorneys can contact United Home at 800-467-0723 or Deputy Receiver Michael Surguine at 501-371-2776 or michael.surguine@Arkansas.gov.
About the Arkansas Insurance Department
The Arkansas Insurance Department, a division of the Arkansas Department of Commerce, was created on March 7, 1917, by an Act of the Arkansas General Assembly. For more information on the Arkansas Insurance Department, please visit http://insurance.arkansas.gov, follow us on Twitter at http://twitter.com/ARInsuranceDept and Facebook at http://www.facebook.com/ArkansasInsuranceDepartment.
About the Arkansas Department of Commerce
The Arkansas Department of Commerce is the umbrella department for workforce and economic development drivers. Its divisions and regulatory boards include Division of Aeronautics, Waterways Commission, Wine Producers Council, Division of Workforce Services, Office of Skills Development, State Bank Department, Insurance Department, Securities Department, Economic Development Commission and Development Finance Authority.