The Illinois Department of Insurance is seeking a court order to gain possession and control of the assets and liabilities of a subsidiary of Triad Guaranty Inc., a move the Winston-Salem, N.C.-based company has agreed to and says will likely lead it to begin bankruptcy proceedings, The Business Journal reported yesterday. The company announced the plans on Tuesday. As a result of the action, Triad Guaranty Inc., the parent company of Triad Guaranty Insurance Corp., will cease to have any oversight or management authority over its subsidiary's business and affairs. Triad Guaranty Inc. will receive a payment of $734,000 from the subsidiary, but will not receive any further reimbursements. The company gave up selling new policies in 2008 and has just been managing its existing portfolio since then. It recently disclosed that it had fallen below a key financial threshold insisted on by the Illinois Department of Insurance that oversees it.
