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Southern American Insurance
Company in Liquidation |
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Southern American Insurance Company (SAIC) was founded in 1934 in the state of Tennessee. It was a part of the Crump Companies and much of its business was written through Crump brokers and intermediaries. Although the company was admitted in only five states (TN, UT, LA, MS, GA) it operated on a surplus lines basis in many other states. It wrote primarily property and casualty business. SAIC ceased writing P&C business in 1986 although in 1988 it began to write non-standard surety bonds. SAIC wrote business in the United States and also through brokers and intermediaries in London through the H.S. Weavers underwriting agency. SAIC is represented in London by KWELM Management Services Limited. In 1988, SAIC was redomesticated to the state of Utah after it was purchased by Victor and Suzanne Borcherds. Much of the company's surplus was used by the Borcherds to build various real estate developments including a golf course, hotel and water park as well as for personal expenses. The company was found to be statutorily insolvent by the Utah Insurance Department and was placed into liquidation on March 26, 1992 by the Third Judicial District Court for Salt Lake County, State of Utah. An order declaring SAIC to be insolvent was issued by the court on April 10, 1992. The Liquidator has liquidated most of the SAIC-owned real property, foreclosed on numerous mortgages, filed preference and fraudulent transfer actions and obtained judgments against several parties. Many lawsuits are still pending. Currently the staff and consultants for the SAIC estate are analyzing and adjudicating claims against the estate and collecting reinsurance. There has been no distribution of assets to the claimants from the estate, but a distribution is anticipated in the future. The Special Deputy Liquidator of SAIC is Rheta Beach. Our location: |
