ROA stops making payments on hospital claims, more on liquidation

Here are reports from the Insurance Journal and the Richmond Times-Dispatch, plus a press release from the SCC titled "SCC TEMPORARILY STOPS PAYMENT OF CERTAIN ROA CLAIMS", another SCC press release that says "2002 ROA STATEMENT CONFIRMS FINANCIAL WOES; SCC ASKED TO FIND COMPANY INSOLVENT," and the ROA receiver's petition for liquidation filed with the SCC available here.

Reciprocal of America was the reinsurer for American National Lawyers Insurance Reciprocal, or ANLIR, which was the legal malpractice insurance carrier for thousands of lawyers in Virginia and Tennessee, and is now in receivership in Tennessee as the result of ROA's receivership, which has likewise resulted in the receivership of Doctors Insurance Reciprocal, a company providing medical malpractice insurance. ROA itself besides acting as reinsurer sold malpractice insurance to hospitals. At the request of the Tennessee receivers of DIR and ANLIR, the SCC has ordered that the Virginia receiver of ROA will stop paying the hospital malpractice claims, while the SCC determines whether the doctor and lawyer claims should be treated like policyholder claims rather than creditor claims.