Risk Retention Group for Taxicabs Placed in Liquidation

Pinelands Insurance Company Risk Retention Group, Inc., was placed in liquidation at the request of the District of Columbia Department of Insurance, Securities and Banking (DISB) in late August 2015, according to an announcement on the DISB website.

Pinelands was an association captive insurance company that began operations in late 2004, according to the DISB's Financial Condition Examination Report for Pinelands as of December 31, 2013. It was owned by its members including the National Transportation Association and the PCC Management Corporation, according to the DISB report.

Pinelands RRG wrote commercial auto liability coverage for taxis in New Jersey, Pennsylvania, and Delaware, the DISB report stated. An August 6, 2015, Philly.com article titled "Troubled Phila. cab insurance firm is curbed," by Paul Nussbaum, reported that in 2014 272 of Philadelphia’s 1,600 cabs were insured by Pinelands.

Pinelands voluntarily suspended new writings and renewals as of March 9, 2015, the DISB's announcement stated. Robert H. "Skip" Meyers, partner, Morris, Manning & Martin, LLP, has been appointed as special deputy liquidator, the DISB announcement stated.   

According to the most recent DISB's Financial Condition Examination Report, for the financial year ending December 31, 2013, Pinelands RRG provided claims-made and occurrence policies with limits ranging from $30,000 per occurrence, $15,000 per person, and $30,000 in the accident aggregate to $100,000 per occurrence to $100,000 per vehicle and $300,000 in the accident aggregate. The total policyholder surplus at year-end 2013 was $694,691, based on the company's annual statement. However, the DISB examination report adjusted the policyholder surplus to $129,490. The latter is less than the statutory minimum capital and surplus required by the District of Columbia as well as being below the authorized control level risk-based capital.

The examination reported the District of Columbia insurance commissioner holds a $1,220,000 letter of credit that can be used to pay claims and other creditors. It also noted “… potential conflicts of interest that were not disclosed in the conflict of interest statements. Specifically, potential conflicts of interest by board members that have ownership interest in affiliated companies were not reported in the conflict of interest statements.”

Pinelands RRG liquidation follows the 2013 liquidation of the Ocean Risk Retention Group, which also wrote commercial automobile liability insurance for taxis.