Five insurance companies with significant capital deficits have filed a lawsuit in the Supreme Court against the Central Bank of Liberia (CBL) for placing them under Provisional Administration (PA) and announcing the take over of their assets.
The African Insurance Corporation of Liberia (AICOL), Capital Express Assurance Company (CEAC), Continental General and Life Insurance Corporation (CGLIC), Family Dollar Universal Insurance Services Incorporated (FDUIS), and the Global Trust Assurance Company (GTAC) last week requested the high court to issue a writ of prohibition against the CBL barring the CBL’s seizure action.
Associate Justice presiding in chambers, Jamesetta Howard Wolokolie, has scheduled a conference with the parties on July 2, 2018 and at the same time placed a stay order on the CBL’s action against the affected companies pending the outcome of the conference.
The CBL in a statement released Friday, June 15, 2018 said its assessments showed the companies have significant capital deficits and have consistently fallen below the capital requirements for licensed insurance of 2017.
According to the CBL, the five insurance companies were placed under PA to protect customers’ interest and promote the safety and soundness of the insurance industry and the interests of the policyholders.
“The Provisional Administrators (Pas) placed in these institutions are empowered to take all necessary actions in preserving the assets of the companies and to protect the interests of the affected companies that occur without the prior approval of the Provisional Administrators after June 15,2018, shall be void and of no effect.
“The move by the CBL is in keeping with the authority vested in it by the Insurance Act of 2013. It followed an assessment by the CBL of the capital positions of the five companies for the period ended March 2018,” the CBL said.
Writes P. Nas Mulbah