American Western Life Insurance Company (AWLIC) was founded in 1962. It was acquired by a California resident in 1985 and was licensed in 18 states. Although the company was domiciled in Utah, its principal operating office was located in California. AWLIC wrote primarily individual and small group accident and health coverage and issued a limited number of life insurance policies. In recent years it entered the natural homeopathic health arena by issuing "wellness" health insurance policies.
Conditions in the small group health insurance market deteriorated whereby a number of small group health insurers found it increasingly difficult to compete profitably for business. AWLIC was no exception. AWLIC's owners had made several unsuccessful attempts to sell the company during the mid 1990s. In 1996 the company acquired a block of small group business from Congress Life Insurance Company. That block of business was primarily located in Arizona and was administered by a third party administrator located in California. By the end of 1996 the company had lost one half of its surplus and, as a result, submitted to a voluntary Administrative Supervision by the Utah Insurance Department in January, 1997.
During the Administrative Supervision blocks of business were transferred to other insurers or health plans. By May, 1997 it became apparent that the liquidation of the company was inevitable. In August, 1997 a liquidation order was obtained from a Utah court.
At the end of the year 2000 all of the policy claims had been paid by the guaranty associations in the states where the company was licensed. The Utah Insurance Commissioner as Liquidator of AWLIC continues to pursue recovery of assets from a number of sources, including the officers and directors for alleged mismanagement of the company.
The Special Deputy Liquidator of AWLIC is Ronald Rosen.
Our location:
215 South State Street,
Suite 300 Salt Lake City, UT 84111
T: (801) 783-6400 F: (801) 355-1013