Demotech Withdraws Financial Stability Rating of New Jersey Title Insurance Company
|August 2, 2011|
Columbus, Ohio-based Demotech, Inc. has withdrawn the Financial Stability Rating (FSR) of A' (A Prime), Unsurpassed, assigned to New Jersey Title Insurance Co. New Jersey Title has suspended issuance of new commitments and is focusing on the resolution of defalcations and claims received on issued policies.
Demotech met with New Jersey Title to discuss the defalcations that the company had experienced. At that time, Demotech stated that the FSR assigned to the company would be modified or withdrawn if insurance or subrogation recoveries did not occur as anticipated by company management or if the financial condition of the company deteriorated due to additional defalcations.
Based upon management's current understanding of the financial impact of the defalcations in conjunction with the reporting requirements of the New Jersey Department of Banking and Insurance, it would appear that New Jersey Title Insurance can continue to meet its obligations as they come due.