-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LHn7bayiQg2OMaTTm8Zmz/gVyNocJJW+4ukSfJBNedmCkYZCguyIy3q1h+UOPdfO WILBg4kvhKFANNQPCCi8xA== 0000898430-01-500627.txt : 20010516 0000898430-01-500627.hdr.sgml : 20010516 ACCESSION NUMBER: 0000898430-01-500627 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 6 CONFORMED PERIOD OF REPORT: 20010508 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20010515 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMWEST INSURANCE GROUP INC CENTRAL INDEX KEY: 0000780118 STANDARD INDUSTRIAL CLASSIFICATION: SURETY INSURANCE [6351] IRS NUMBER: 952672141 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-09580 FILM NUMBER: 1639923 BUSINESS ADDRESS: STREET 1: 5230 LAS VIRGENES RD CITY: CALABASAS STATE: CA ZIP: 91302 BUSINESS PHONE: 8188712000 MAIL ADDRESS: STREET 1: 5230 LAS VIRGENES RD CITY: CALABASAS STATE: CA ZIP: 91302 8-K 1 d8k.txt FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): May 8, 2001 ----------- Amwest Insurance Group, Inc. ---------------------------- (Exact name of Registrant as specified in its charter) Delaware 1-9580 95-2672141 - ------------------------------------------------------------------------------- (State or other jurisdiction (Commission (IRS Employer of incorporation) File number) Identification No.) 5230 Las Virgenes Road, Calabasas, 91302 - ------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (818) 871-2000 -------------- This document contains a total of 15 pages. The exhibit index begins on Page 4. Page 1 of 15 Pages ITEM 3. Bankruptcy or Receivership On May 8, 2001, the Registrant's primary insurance subsidiary, Amwest Surety Insurance Company, was placed under an administrative order of supervision by the Director of Insurance for the state of Nebraska pursuant to an Order of Supervision. Supervision is an administrative order authorized pursuant to Nebraska law which enables management to continue operating the company under the supervision of the Nebraska Director of Insurance. While in supervision, Amwest Surety Insurance Company may not write or renew business; however, the company will continue to pay claims. Far West Insurance Company, which is a wholly owned subsidiary of Amwest Surety Insurance Company, is not subject to the Order of Supervision. A copy of the various notices issued by the State of Nebraska Department of Insurance are attached hereto as Exhibits 99-1 through 99-4. A copy of the Registrant's press release dated May 8, 2001 announcing the Order of Supervision is attached hereto as Exhibit 99-5. ITEM 7. Financial Statements and Exhibits The following is furnished as Exhibits to this report: 99-1 A Notice of Hearing (Cause No.: C-1242) between the State of Nebraska Department of Insurance, Petitioner and Amwest Surety Insurance Company, Respondent, filed on May 8, 2001 before the Department of Insurance - State of Nebraska. 99-2 A Waiver of Hearing and Consent to Supervision (Cause No.: C-1242) between the State of Nebraska Department of Insurance, Petitioner and Amwest Surety Insurance Company, Respondent, filed on May 8, 2001 before the Department of Insurance - State of Nebraska. 99-3 An Order of Supervision and List of Requirements to Abate Supervision (Cause No.: C-1242) between the State of Nebraska Department of Insurance, Petitioner and Amwest Surety Insurance Company, Respondent, filed on May 8, 2001 before the Department of Insurance - State of Nebraska. 99-4 An Appointment of Special Deputy Supervisor (Cause No.: C-1242) between the State of Nebraska Department of Insurance, Petitioner and Amwest Surety Insurance Company, Respondent, filed on May 8, 2001 before the Department of Insurance - State of Nebraska. 99-5 Press Release of Registrant dated May 8, 2001. Page 2 of 15 Pages SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. AMWEST INSURANCE GROUP, INC. Dated: May 15, 2001 By: /s/ Phillip E. Huff -------------------------------- Phillip E. Huff Executive Vice President Chief Financial Officer Page 3 of 15 Pages INDEX OF EXHIBITS
Exhibit Sequentially Number Description Numbered Page - ------ ----------- ------------- 99-1 A Notice of Hearing (Cause No.: C-1242) between the State of 5 Nebraska Department of Insurance, Petitioner and Amwest Surety Insurance Company, Respondent, filed on May 8, 2001 before the Department of Insurance - State of Nebraska. 99-2 A Waiver of Hearing and Consent to Supervision (Cause No.: C-1242) 7 between the State of Nebraska Department of Insurance, Petitioner and Amwest Surety Insurance Company, Respondent, filed on May 8, 2001 before the Department of Insurance - State of Nebraska. 99-3 An Order of Supervision and List of Requirements to Abate Supervision 9 (Cause No.: C-1242) between the State of Nebraska Department of Insurance, Petitioner and Amwest Surety Insurance Company, Respondent, filed on May 8, 2001 before the Department of Insurance - State of Nebraska. 99-4 An Appointment of Special Deputy Supervisor (Cause No.: C-1242) 14 between the State of Nebraska Department of Insurance, Petitioner and Amwest Surety Insurance Company, Respondent, filed on May 8, 2001 before the Department of Insurance - State of Nebraska. 99-5 Press Release of Registrant dated May 8, 2001. 15
Page 4 of 15 Pages EX-99.1 2 dex991.txt NOTICE OF HEARING EXHIBIT 99.1 BEFORE THE DEPARTMENT OF INSURANCE STATE OF NEBRASKA STATE OF NEBRASKA DEPARTMENT OF INSURANCE, NOTICE OF HEARING PETITIONER, CAUSE NO.: C-1242 AMWEST SURETY INSURANCE COMPANY, RESPONDENT. TO: Jeffrey A. Shonka, President and Chief Operating Officer Amwest Surety Insurance Company 5230 Las Virgenes Rd., Calabasas, CA 91302 Please be advised that pursuant to the Insurer' Supervision, Rehabilitation, and Liquidation Act, Neb. Rev. Stat. (S)44-4801 et seq., and --------------- specifically, Neb. Rev. Stat. (S) 44-4809(2)(a), the Nebraska Department of --------------- Insurance shall commence a supervision hearing before the Director of Insurance ("Director") at the offices of the Nebraska Department of Insurance, 941 "O" Street, Suite 400, Lincoln Nebraska, on Tuesday, May 22, 2001 at 9:00 am., pursuant to Neb. Rev. Stat. (S) 44-4809(5). The purpose of said hearing shall be --------------- to determine whether any single ground or combination of grounds exist that would give the Director reason to place Amwest Surety Insurance Company ("Amwest Surety"), a Nebraska domestic insurer, under an order of supervision. Specifically, the Director shall determine whether there is reasonable cause to believe that Amwest Surety's financial condition renders the continuance of its business hazardous to the public or to its insureds due to Amwest Surety's failure to acquire necessary reinsurance coverages pursuant to Chapter 55, sections 004.01, 004-02, and 004.06 of Title 210 of the Nebraska Administrative Code. Page 5 of 15 Pages Should the Director find after hearing that Amwest Surety Insurance Company is subject to supervision, the Director shall issue such orders as necessary and include requirements to abate supervision, applying the remedies and sanctions authorized by Chapter 44 of Nebraska Revised Statutes, or take such other Action as he deems appropriate which are authorized by law. Dated and effective this 8/th/ day of May, 2001. STATE OF NEBRASKA DEPARTMENT OF INSURANCE BY: Ann M. Frohman General Counsel CERTIFICATE OF SERVICE I hereby certify that a true and correct copy of the foregoing Notice of Hearing was served upon Jeffrey A. Shonka, President and Chief Operating Officer of Amwest Surety Insurance Company, 5230 Las Virgenes Rd., Calabasas, CA 91302 on this 8th day of May, 2001, by facsimile and U.S. Mail, postage prepaid. Page 6 of 15 Pages EX-99.2 3 dex992.txt A WAIVER OF HEARING AND CONSENT TO SUPERVISORS EXHIBIT 99.2 BEFORE THE DEPARTMENT OF INSURANCE STATE OF NEBRASKA STATE OF NEBRASKA DEPARTMENT OF INSURANCE, WAIVER OF HEARING AND PETITIONER. CONSENT TO SUPERVISION vs. AMWEST SURETY INSURANCE COMPANY, CAUSE No.: C-1242 RESPONDENT. COMES NOW, Jeffrey A. Shonka, President and Chief Operating Officer of Amwest Surety Insurance Company ("Amwest Surety") and states as follows: 1. I, Jeffrey A. Shonka, am the President and Chief Operating Officer of Amwest Surety, a property and casualty insurance company organized and licensed under Nebraska law. 2. On or about May 8, 2001, I received a copy of the Notice of Hearing filed by Ann M. Frohman, General Counsel for the Department of Insurance, and a proposed Order of Supervision. 3. The Nebraska Department of Insurance has requested Amwest Surety to consent to supervision pursuant to Neb. Rev. Stat. (S) 44-4809 (Reissue 1998) --------------- based on the ground that Amwest Surety's financial condition renders the continuance of its business hazardous to the public or to its insureds. 4. The Board of Directors of Amwest Surety has authorized me as President and Chief Operating Officer to execute this Waiver of Hearing and Consent to Supervision as proposed on behalf of Amwest Surety. Page 7 of 15 Pages 5. Amwest Surety acknowledges and agrees to the following: a. Amwest Surety waives its right to a formal hearing pursuant to Neb. Rev. Stat. (S) 44-4809 (5) in connection with the entry of --------------- an Order of Supervision and enters into this Consent to Supervision freely and voluntarily as authorized by Neb. Rev. --------- Stat. (S) 44-4809 (2)(a)(v); ----- b. Amwest Surety consents to the immediate entry of an Order of Supervision and the appointment of a Supervisor based on the ground that Amwest Surety's financial condition renders the continuance of its business hazardous to the public or to its insureds; c. Amwest Surety agrees to take all actions, produce all books, records and other documents and to cooperate fully in any other manner with the Supervisor; d. This consent shall not prejudice the authority of the Director of Insurance to exercise any right under Neb. Rev. Stat. (S) 44-4801 --------------- et seq. ------ Dated this 8th day of May, 2001. AMWEST SURETY INSURANCE COMPANY BY. Jeffrey A. Shonka President and Chief Operating Officer Subscribed and sworn to before me on this 8/th/ day of May, 2001. Notary Public Page 8 of 15 Pages EX-99.3 4 dex993.txt ORDER OF SUPERVISION AND LIST OF REQUIREMENTS EXHIBIT 99.3 BEFORE THE DEPARTMENT OF INSURANCE STATE OF NEBRASKA STATE OF NEBRASKA DEPARTMENT OF INSURANCE, ORDER OF SUPERVISION AND LIST OF REQUIREMENTS TO vs. ABATE SUPERVISION AMWEST SURETY INSURANCE CAUSE NO.: C-1242 COMPANY, RESPONDENT The duly appointed and qualified Director of Insurance for the State of Nebraska, L. Tim Wagner, ("Director"), acting under the authority of Neb. Rev. --------- Stat. (S) 44-101 (Reissue 1998) and (S) 44-4801 et seq. (Reissue 1998) hereby - ----- ------- considers the Consent to Supervision entered into by Amwest Surety Insurance Company ("Amwest Surety"), on May 8, 2001, the same having been filed for approval and entry of an Order of Supervision. The Director, being fully advised in the premises, hereby finds, orders and concludes as follows: FINDINGS OF FACT ---------------- 1. Amwest Surety is a Nebraska domestic property and casualty insurance company organized under the laws of Nebraska and authorized to do the business of insurance in Nebraska and various other jurisdictions. Amwest Surety's home office is 5230 Las Virgenes Road, Calabasas, CA 91302. Page 9 of 15 Pages 2. On Tuesday, May 8, 2001, the Department of Insurance filed a Notice of Hearing pursuant to Neb. Rev. Stat. (S) 44-4809(5) (Reissue 1998) for purposes --------------- of commencing a supervision hearing under Neb. Rev. Stat. (S) 44-4809(2)(a). --------------- 3. Amwest Surety was informed of its right to a public hearing and consents to this Order of Supervision as reflected in the Consent to Supervision attached hereto. CONCLUSIONS OF LAW ------------------ 1. The State of Nebraska Department of Insurance has jurisdiction over the subject matter and over Amwest Surety Insurance Company, 2. Grounds exist for placing Amwest Surety under supervision pursuant to Neb. Rev. Stat. (S) 44-4809. --------------- 3. Amwest Surety's consent to supervision is reasonable and in accordance with Neb. Rev. Stat. (S) 44-4809(2)(a)(v). --------------- ORDER OF SUPERVISION -------------------- NOW, THEREFORE, it is hereby ordered by the Director that: 1. The Consent to Supervision attached hereto entered into by Amwest Surety is hereby accepted and approved. 2. Amwest Surety is immediately placed under an Order of Supervision pursuant to Neb. Rev. Stat. (S) 44-4809 et seq. --------------- ------ 3. David Krumm Chief Financial Examiner of the Nebraska Department of Insurance is appointed as Supervisor. The Supervisor may appoint one or more Deputy Supervisors who shall have all powers and responsibilities granted by law, and expressly Neb. Rev. Stat. (S) 44-4801, 44-4809 et al. --------------- -- -- Page 10 of 15 Pages 4. Amwest Surety shall pay all costs incurred by the Supervisor and any Deputy Supervisors in overseeing the operations of Amwest Surety. 5. During the period of supervision, Amwest Surety shall not undertake, engage in, commit to, initiate, or continue any activity beyond those that are routine to the day-to-day conduct of its business without the prior approval of the Director or Supervisor. Notwithstanding any preceding provision of this Order, and regardless of the monetary amount involved, the following activities are understood to be outside the routine day-to-day conduct of Amwest Surety's business, and in no event shall these activities be undertaken, engaged in, initiated or continued by Amwest Surety without the prior approval of the Director or Supervisor: (a) Dispose of, convey or encumber any of its assets or its business in force; (b) Withdraw any funds from any of its bank accounts; (c) Lend any of its funds; (d) Invest any of its funds; (e) Transfer any of its property; (f) Incur any debt, obligation, or liability; (g) Merge or consolidate with another company; (h) Enter into any new reinsurance contract or treaty; (i) Write or renew any insurance business; (j) Terminate, surrender, forfeit, convert, or lapse any insurance policy, certificate, or contract except for nonpayment of premiums due; (k) Release, pay, or refund premium deposits, accrued cash or loan values, unearned premiums, or other reserves on any insurance policy, certificate, or contract; Page 11 of 15 Pages (l) Make any material change in management; or (m) Increase salaries and benefits of officers or directors or make any preferential payment of bonuses, dividends, or other payments deemed preferential. 6. Nothing in this order shall preclude the Director from taking further immediate action as deemed in the best interest of Amwest Surety's policyholders and the public including commencement of further legal proceedings if and as necessary. LIST OF REQUIREMENTS TO ABATE SUPERVISION ----------------------------------------- The Director hereby notifies Amwest Surety that it shall convene and conduct a hearing in no less than 60 days to determine whether Amwest Surety has complied with the following conditions as set forth in this Order. Those conditions are as follows: 1. Amwest Surety is possessed of the minimum surplus and capital stock required by insurance laws; 2. Amwest Surety has filed a risk-based capital plan and all necessary adjustments thereto as requested by the Director or Supervisor; 3. Amwest Surety has filed periodic reports and monthly financial statements in the form and upon the dates requested by the Director or Supervisor; and, 4. Amwest Surety's continued operation will not be hazardous to the public or holders of its policies or certificates. Should the Director find after hearing that Amwest Surety has failed to comply with any of the requirements set out above or has committed acts or is in the status or condition prohibited by Chapter 44 of Nebraska Revised Statutes, he may enter an Order applying the remedies and sanctions authorized by that Chapter or take such other action Page 12 of 15 Pages as he deems appropriate which is authorized by law, Dated and effective this 8/th/ day of May, 2001. L. Tim Wagner Director Nebraska Department of Insurance CERTIFICATE OF SERVICE I hereby certify that a true and correct copy of the foregoing Order of Supervision and List of Requirements to Abate Supervision was served upon Jeffrey A. Shonka, President and Chief Operating Officer of Amwest Surety Insurance Company, 5230 Las Virgenes Rd., Calabasas, CA 91302 on this 8th day of May, 2001, by certified U.S. Mail, postage prepaid. Page 13 of 15 Pages EX-99.4 5 dex994.txt APPOINTMENT OF SPECIAL DEPUTY SUPERVISOR EXHIBIT 99.4 BEFORE THE DEPARTMENT OF INSURANCE STATE OF NEBRASKA STATE OF NEBRASKA APPOINTMENT OF SPECIAL DEPARTMENT OF INSURANCE, DEPUTY SUPERVISOR PETITIONER, vs. CAUSE NO.: C-1242 AMWEST SURETY INSURANCE COMPANY, RESPONDENT. I, L. Tim Wagner, Director of Insurance for the State of Nebraska, hereby appoint Michael J. FitzGibbons of FitzGibbons, Tharp & Associates as Special Deputy Supervisor pursuant to Neb. Rev. Stat. (S) 44-4809 (Reissue --------------- 1999). Dated this 8/th/ day of May, 2001, L . TIM WAGNER Director of Insurance CERTIFICATE OF SERVICE The undersigned hereby certifies that a true copy of the above Appointment of Special Deputy Supervisor was served upon Jeffrey A. Shonka, President and Chief Operating Officer of Amwest Surety Insurance Company, 5230 Las Virgenes Rd., Calabasas, CA 91302 on this 8th day of May, 2001, by certified U.S. Mail, postage prepaid. Page 14 of 15 Pages EX-99.5 6 dex995.txt PRESS RELEASE OF REGISTRANTS DATED MAY 8, 2001 EXHIBIT 99.5 Charles L. Schultz (818) 871-2044 AMWEST INSURANCE GROUP, INC. ANNOUNCES ORDER OF SUPERVISION OF AMWEST SURETY INSURANCE COMPANY - -------------------------------------------------------------------------------- CALABASAS, CA. - May 8, 2001 - Amwest Insurance Group, Inc., (AMEX:AMW) (PCXE:AMW) announced today that the Company has been unable to reach an agreement with its reinsurer on terms which would enable it to obtain necessary regulatory approval for such transaction. Consequently, Amwest Surety Insurance Company today consented to the placement of the company under an administrative order of supervision by the Director of Insurance for the State of Nebraska pursuant to an Order of Supervision. Supervision is an administrative order authorized pursuant to Nebraska law which enables the management to continue operating the company under the supervision of the Nebraska Director of Insurance. While in supervision, Amwest Surety Insurance Company may not write or renew business; however, the company will continue to pay claims. The Nebraska Department of Insurance has sought the cooperation of state insurance departments and requested that such states not revoke the Certificates of Authority held by Amwest Surety Insurance Company in each respective state. Far West Insurance Company is not subject to the Order of Supervision. Amwest is a Calabasas-based insurance holding company operating through its subsidiaries, Amwest Surety Insurance Company and Far West Insurance Company. Certain statements contained in this news release regard matters that are not historical facts and are forward-looking statements. Because such forward-looking statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. The Company undertakes no obligation to release publicly the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events. # # # Page 15 of 15 Pages -----END PRIVACY-ENHANCED MESSAGE-----