Explore A-CAP Group’s response to Utah Insurance Department’s petition, highlighting the latest legal challenges and implications.
A-CAP Group, a prominent financial services firm headquartered in New York and overseeing assets exceeding $12 billion, has initiated legal action to halt the Utah Insurance Department’s Verified Petition, filed on March 21. The company argues that this petition undermines a previous court decision and seeks to bypass the current legal processes.
The controversy stems from a court order dated February 14, which suspended an emergency directive issued by the Utah Insurance Department on December 2, 2024. This directive had placed operational restrictions on three A-CAP affiliates: Sentinel Security Life Insurance Company, Haymarket Insurance Company, and Jazz Reinsurance Company.
The February court order nullified all restrictions, including those preventing the companies from engaging in new business activities, and prohibited any additional regulatory mandates while the litigation is unresolved. A-CAP contends that the department’s recent filing is an attempt to exert undue influence on the company, describing these actions as retaliatory and based on unfounded claims.
The issues highlighted in the March petition reportedly resemble matters already under consideration in a consolidated legal proceeding slated for May 12-16, 2025. According to A-CAP, independent advisors have previously examined and dismissed similar accusations.
A-CAP further emphasized a recent decision by the South Carolina administrative law court, which confirmed the company’s robust financial standing. The company reported a profitable 2024 and assured that both Atlantic Coast Life and Sentinel Security Life continue to fulfill all obligations to policyholders.
Since its inception in 2016, A-CAP boasts a capital increase exceeding $483 million, with more than $270 million allocated to its insurance subsidiaries. Specifically, in Utah, the capital contributions to its domiciled insurers total $171 million.
A-CAP has expressed its intent to collaborate with regulatory bodies while pursuing a resolution through judicial avenues.
Yorum Yap