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Report on Examination
of
AMICA PROPERTY AND CASUALTY INSURANCE COMPANY
Lincoln, Rhode Island
as of
December 31, 2014
State of Rhode Island and Providence Plantations
Department of Business Regulation
Insurance Division
TABLE OF CONTENTS
Page
SALUTATION ………………………………………………………….…………… 1
SCOPE OF EXAMINATION ……………………………………………………….. 2
COMPANY HISTORY ……..…………………………………………….…………. 3
MANAGEMENT AND CONTROL ………………….……………..…………….… 4
Shareholders………………………………………………………….……..… 4
Board of Directors …………………………………………………………… 5
Committees ………………………………………………………….……….. 7
Officers …………………………………………………………….………… 7
Organizational Structure……………………………………………………… 8
Inter-Company Agreements..…………………………………………...……. 10
TERRITORY AND PLAN OF OPERATION ……………………………………… 12
REINSURANCE …………………………………………………………………….. 13
FINANCIAL STATEMENTS ……………………………………………………….. 14
Comparative Statement of Assets, Liabilities, Surplus and Other Funds……. 15
Statement of Income……………… ……………………………………….... 16
Capital and Surplus Account ……………………………………………….... 17
Reconciliation of Capital and Surplus ……………………………………….. 18
Analysis of Examination Adjustments ………………………………………. 19
ASSETS ……………………………………………………………………………… 20
Bonds ………………………………………………………………………… 20
LIABILITIES ………………………………………………………………………… 21
Losses ……….……………………………………………………………….. 21
Loss Adjustment Expenses …..………..……………………………………... 21
CAPITAL AND SURPLUS.……………………………………………………...…. 22
SUBSEQUENT EVENTS ……………………………….………………………….. 22
CONCLUSION ………………………………………………………………………. 23
1
February 25, 2016
Ms. Elizabeth Kelleher Dwyer
Deputy Director and Superintendent of Banking and Insurance
State of Rhode Island and Providence Plantations
Department of Business Regulation
1511 Pontiac Avenue, Bldg. 69-2
Cranston, Rhode Island 02920
Dear Superintendent Dwyer:
In accordance with your instructions and pursuant to Chapters 13.1 and 35 of Title 27 of the
General Laws of the State of Rhode Island, an examination has been made as of
December 31, 2014, of the financial condition and affairs of
AMICA PROPERTY AND CASUALTY INSURANCE COMPANY
at its home office located at 100 Amica Way, Lincoln, Rhode Island. The report of such
examination is herewith submitted.
Amica Property and Casualty Insurance Company, hereinafter referred to as “Amica P&C” or
the “Company” was previously examined as of December 31, 2010. Both the current and prior
examinations have been conducted by Insurance Division of the State of Rhode Island
(“Insurance Division”).
2
SCOPE OF EXAMINATION
The current examination covered the four-year period of January 1, 2011 through
December 31, 2014 and was performed in compliance with the above mentioned sections of
the General Laws of the State of Rhode Island, as amended. We conducted our examination
in accordance with the NAIC Financial Condition Examiners Handbook. The Handbook
requires that we plan and perform the examination to evaluate the financial condition, assess
corporate governance, identify current and prospective risks of the company and evaluate
system controls and procedures used to mitigate those risks. An examination also includes
identifying and evaluating significant risks that could cause an insurer’s surplus to be
materially misstated both currently and prospectively. All accounts and activities of the
company were considered in accordance with the risk-focused examination process. This may
include assessing significant estimates made by management and evaluating management’s
compliance with Statutory Accounting Principles. The examination does not attest to the fair
presentation of the financial statements included herein. If, during the course of the
examination an adjustment is identified, the impact of such adjustment will be documented
separately following the Company’s financial statements.
This examination report includes significant findings of fact and general information about the
insurer and its financial condition. There may be other items identified during the examination
that, due to their nature (e.g., subjective conclusions, proprietary information, etc.), are not
included within the examination report but separately communicated to other regulators and/or
the company.
3
The Company’s parent, Amica Mutual Insurance Company (“Amica Mutual”) owns 100% of
the capital stock of Amica P&C and Amica Life Insurance Company (“Amica Life”).
Concurrent examinations were also made of Amica Mutual and Amica Life, and reports
thereon are submitted under separate cover.
COMPANY HISTORY
Amica Property and Casualty Insurance Company was incorporated on May 11, 2005, through
the actions of its Incorporators, Robert A. DiMuccio and M. Stuart Towsey, Jr.
(“Incorporators”) and pursuant to the filing of its original Articles of Incorporation (“Charter”)
with the Secretary of State, as approved by the Director of the Department of Business
Regulation.
The Articles of Incorporation give the Company the authority to insure any and all risks except
life, annuity, title, and financial guaranty insurance and further provides that the authorized
capital stock of the Company shall be in one class of stock consisting of ten-thousand (10,000)
shares of common stock with a fifty-dollar ($50) par value. Subsequently, on June 8, 2005,
the Articles of Incorporation were amended to increase the par value to three hundred and fifty
dollars ($350).
4
On June 10, 2005, the Company issued ($3,500,000) of capital stock to Amica Mutual
Insurance Company consisting of ten-thousand (10,000) shares of common stock with a three
hundred and fifty dollar ($350) par value. Subsequently, on June 15, 2005, Amica Mutual
made a surplus contribution in the amount of eleven million dollars ($11,000,000). On January
1, 2013, Amica Mutual made a non-cash investment in the Company totaling $19.1 million
($19,120,193). This was done to facilitate the January 1, 2013 change in the quota share rate
of the reinsurance contract between the Company and Amica Mutual from 80% to 100% and
was for settlement of the Company’s December 31, 2012 reserve balances for losses, loss
adjustment expenses, and unearned premiums net of ceding commission.
The principal office of the Company is located within the home office building of its parent,
Amica Mutual Insurance Company, in the Town of Lincoln, Rhode Island.
MANAGEMENT AND CONTROL
Shareholders
The bylaws provide that the annual meeting of the shareholders shall be held at the principal
office of the Company in Lincoln, Rhode Island on the second Thursday in March in each year,
for the election of directors, and for the transaction of such other business as may be brought
before the meeting. Special meetings of the shareholders may be called in any manner
prescribed or permitted by law.
5
At all meetings of the shareholders, a majority of the shares entitled to vote, represented in
person or by proxy, shall constitute a quorum. Any corporate action may be decided by a
majority vote of those present in person or by proxy.
Board of Directors
The bylaws provide that the Board of Directors (“Board”) shall, except as limited by law, the
charter and the bylaws, have the power to direct the affairs, business, and property of the
Company.
The charter stipulates that the number of directors of the Company shall be fixed from time to
time by the bylaws but the number shall not be less than ten (10). The bylaws further stipulate
that the Board shall consist of twelve (12) members, a majority of whom are neither officers
nor employees of the Company and shall be elected as prescribed by the charter of the
Company. There is no term of office for directors specified in the bylaws; however, a review
of the minutes of the meetings of the shareholders revealed that directors were elected for the
term of one (1) year. The Company’s bylaws stipulate that directors shall retire no later than
the annual meeting following their 72nd birthday.
The bylaws provide that the Board of Directors shall hold a meeting within ten (10) days after
each annual meeting of the shareholders for the election of officers and committees and for the
transaction of any other business that may come before the meeting. The directors shall hold
as many meetings during the year as they shall prescribe. Special meetings of the directors
6
shall be called at any time by the Secretary upon request in writing of the President or any three
(3) directors.
A majority of the Board of Directors shall constitute a quorum and a majority vote of the
members in attendance at any meeting of the Board shall, in the presence of a quorum, decide
its actions. The members of the Board of Directors serving at December 31, 2014 were as
follows:
Name
Business Affiliation
Term
Expires
Robert A. DiMuccio, Chairman Chairman, President and Chief Executive Officer Amica Mutual Insurance Company
2015
Jeffrey P. Aiken Attorney-at-law
2015
Debra A. Canales Executive Vice President/Chief People &
Experience Officer
Providence Health & Services
2015
Patricia W. Chadwick President Ravengate Partners, LLC
2015
Edward F. DeGraan Retired – Vice Chairman The Gillette Company
2015
Barry G. Hittner Attorney-at-law
2015
Michael D. Jeans President (Retired) New Directions, Inc.
2015
Ronald K. Machtley President Bryant University
2015
Richard A. Plotkin Certified Public Accountant 2015
Donald J. Reaves Retired Chancellor and Professor Winston-Salem State University
2015
Cheryl W. Snead President and Chief Executive Officer Banneker Industries, Inc.
2015
Thomas A. Taylor Retired – President and Chief Executive Officer
Amica Mutual Insurance Company
2015
7
* All directors except for Thomas Taylor subsequently reelected to terms expiring in 2016. Mr. Taylor retired in
February 2015. Jill J. Avery (Senior Lecturer – Harvard Business School) elected to Mr. Taylor’s unexpired
term and then reelected to a term expiring in 2016.
Committees
The bylaws stipulate that the Board of Directors may elect from their own number an executive
committee, a finance committee, an investment committee, a compensation committee, a
nominating committee, an audit committee, and such other committees as they see fit to which
certain powers and responsibilities may be delegated. At December 31, 2014, the Investment
Committee was comprised of all members of the Board of Directors with Robert A. DiMuccio
serving as Chairman. The other existing committees consisted of the following members at
December 31, 2014:
Governance and Nominating
Committee
Audit
Committee
Jeffrey P. Aiken, Chair Ronald K. Machtley,
Chair
Donald J. Reaves Michael D. Jeans
Edward F. DeGraan Richard A. Plotkin
Debra A. Canales
Thomas A. Taylor
Officers
Officers with the rank of Vice President or higher are designated as Senior Officers. The Board
of Directors elects Senior Officers, as well as all other Company officers. The Senior Officers
serving at December 31, 2014 were as follows:
Robert A. DiMuccio Chairman, President and Chief Executive Officer
Paul A. Pyne Executive Vice President and Chief Operations Officer
James P. Loring Senior Vice President, Chief Financial Officer and Treasurer
8
Suzanne E. Casey Senior Assistant Vice President and Secretary
Robert K. Benson Senior Vice President and Chief Investment Officer
Jill H. Andy Senior Vice President
James A. Bussiere Senior Vice President
Theodore C. Murphy Senior Vice President
Robert P. Suglia Senior Vice President and General Counsel
Peter E. Moreau Senior Vice President and Chief Information Officer
The Company’s parent, Amica Mutual, implemented a mandatory retirement policy effective
January 1, 1991 for all employees at the level of Vice President and higher, whose employment
history includes service for two years prior to retirement in either a bona fide executive or high
policy making capacity, and who are eligible to receive a Company provided retirement benefit
of at least $44,000, exclusive of social security. These employees must retire by the end of the
calendar year in which they reach age 65.
¹ At a meeting of the Shareholders of Amica Property and Casualty Insurance Company held
in February 2016, minor changes were approved to the Charter and By-Laws regarding the
number and retirement age of directors. These changes will be filed with the DBR and/or
Secretary of State’s office as appropriate.
Organizational Structure
Amica Mutual is the ultimate parent in the Amica Mutual Group Insurance Holding Company
System. At December 31, 2014, Amica Mutual owned 100% of the outstanding stock of Amica
Life Insurance Company, Amica Property and Casualty Insurance Company and Amica
Lloyd’s of Texas, Inc. Amica Mutual also owns 100% of the outstanding stock of Amica
General Agency, Inc. and Amica General Insurance Agency of California, Inc.
9
Amica Lloyd’s of Texas, Inc. was organized as an attorney-in-fact to manage Amica Lloyd’s
of Texas, a Texas-domiciled insurer formed in 1998 to leverage the group’s competitive
position in the Texas insurance market. Through its ownership in Amica Lloyd’s of Texas,
Inc., Amica Mutual is the ultimate controlling entity of Amica Lloyd’s of Texas. Effective
January 1, 2014, business previously written by Amica Lloyd’s of Texas was written by Amica
Mutual upon renewal. Amica Lloyd’s operations will continue in 2015 to settle outstanding
losses and other liabilities. Management is evaluating the future plans of Amica Lloyd’s as it
continues to run off, with a final decision expected in 2015. (See Subsequent Events section
regarding 2015 merger with Amica Lloyds).
On January 1, 2013, Amica Mutual made a non-cash investment in the Company totaling $19.1
million. This was done to facilitate the January 1, 2013 change in the quota share rate of the
reinsurance contract between Amica P&C and the Company from 80% to 100% and was for
settlement of the Company’s December 31, 2012 reserve balances for losses, loss adjustment
expenses, and unearned premiums net of ceding commission.
10
The following presentation of the holding company system as of December 31, 2014 reflects
the identities and interrelationships between the Company and its affiliates:
Inter-Company Agreements
The Company and its parent, Amica Mutual, have entered into a Cost Allocation Agreement
whereby the Company is provided with personnel, office space, equipment and facilities.
Under the terms of the agreement, Amica P&C will reimburse Amica Mutual on a monthly
basis for the cost of the services provided, including staff compensation, overhead, and other
specified expenses. Such costs shall be fair and reasonable in accordance with Amica
standards and generally accepted accounting practices. The monthly compensation due to a
11
party shall be paid by the owing party within fifty-five (55) days of the end of the month to
which it applies.
The Company has entered into a Consolidated Federal Income Tax Agreement (“Tax
Agreement”) with Amica Mutual and its other affiliates, excluding Amica Life. Under the
terms of the Tax Agreement, allocation is made in accordance with Section 1552(a)(2) of the
Internal Revenue Code, and is based upon separate return calculations with current credit for
losses. The inter-company estimated tax balances are settled at least quarterly during the tax
year with a final settlement during the month following the filing of the consolidated income
tax return.
Prior to January 1, 2014, the Company was party to a Capital Maintenance Agreement with its
ultimate parent, Amica Mutual Insurance Company. The terms of the agreement stated that
when the ratio of net premiums written to surplus for the Company is above an agreed upon
ratio, Amica Mutual will infuse capital to restore surplus. As the Company no longer has net
written premiums due to the change in the quota share agreement discussed above,
management elected not to renew the Capital Maintenance Agreement for 2014.
An inter-company reinsurance agreement is in effect between the Company and Amica Mutual.
Refer to the ‘Reinsurance’ section of this report for details on this agreement.
12
TERRITORY AND PLAN OF OPERATION
A review of the certificates of authority in effect at December 31, 2014, and the Company’s
compliance with these, the examiners confirmed that the Company was licensed to transact
business in the states of Rhode Island, New Jersey and New York, and that the Company
appears to be operating in compliance with its certificates of authority.
The Articles of Incorporation and Rhode Island Certificate of Authority grant the Company
the authority to insure any and all risks except life, annuities, title, and mortgage and financial
guarantee insurance. Currently, the Company’s writings are confined to automobile liability
and automobile physical damage in the states of New Jersey and New York.
The Company has no policy-writing agents and business is acquired primarily through the
mail, telephone and internet. Company employees are appointed as agents to write property
and casualty insurance. The Company primarily services policyholders through two offices in
New Jersey and three offices in New York, which handle sales, claims, underwriting and other
service related matters for client accounts. In addition to its service offices, the Company
maintains three call centers for after hour customer service. The call centers are located in
Lincoln, Rhode Island., Carmel, Indiana, and Spokane, Washington. The processing of
premiums and the payment of all large losses are handled at the Company’s Corporate Office.
The Company began writing new policies by renewing Amica Mutual’s New Jersey auto
policies with effective dates of March 1, 2006 and later. Effective January 1, 2014 and upon
policy renewal, approximately 65% of the business previously written by the Company was
13
written by Amica Mutual. In addition, effective July 1, 2014, the Company began writing New
York auto policies. New auto business in New York will be written by either Amica Mutual or
the Company based on set underwriting criteria.
REINSURANCE
Intercompany Reinsurance
The Company participates in a Quota Share Reinsurance Agreement with its parent, Amica
Mutual Insurance Company. Under the terms of the Quota Share Reinsurance Agreement, the
Company shall cede and Amica Mutual shall accept a 100% quota share participation of the
Company’s net liability on risks under all binders, policies, contracts, certificates and other
obligations of insurance or reinsurance. From the Company’s inception of business to
December 31, 2012, the quota share participation rate was 80%; however, the rate was
amended to 100% effective January 1, 2013.
The Company also participates in pools where it is necessary to meet statutory obligations.
14
FINANCIAL STATEMENTS
The results of the examination are set forth in the following exhibits and schedules:
Comparative Statement of Assets, Liabilities, Surplus and Other Funds
December 31, 2014 and December 31, 2010
Statement of Income
Year ended December 31, 2014
Capital and Surplus Account
December 31, 2013 to December 31, 2014
Reconciliation of Surplus
December 31, 2010 to December 31, 2014
Analysis of Examination Adjustments
December 31, 2014
15
AMICA PROPERTY AND CASUALTY INSURANCE COMPANY
Comparative Statement of Assets, Liabilities, Surplus and Other Funds
December 31, 2014 and December 31, 2010
December 31, December 31, Increase
2014 2010 (Decrease)
ASSETS
Bonds $14,134,277 $11,080,617 $3,053,660
Cash and cash equivalents 2,148,936 0 2,148,936
Short-term investments 1,364,974 936,577 428,397
Investment income due and accrued 111,654 118,031 (6,377)
Uncollected premiums and agents’ balances in the
course of collection 1,154,048 2,173,013 (1,018,965)
Deferred premiums, agents’ balances and
installments booked but deferred and not yet due 6,200,210 12,604,107 (6,403,897)
Amounts recoverable from reinsurers 3,116,352 2,752,734 363,618
Current federal income tax recoverable 91,055 41,000 50,055
Receivables – other surcharges 578,462 465,152 113,310
Total Assets $28,899,968 $30,171,231 (1,271,263)
December 31, December 31, Increase
2014 2010 (Decrease)
LIABILITIES, SURPLUS AND OTHER FUNDS
Losses $0 $8,990,665 $(8,990,665)
Loss adjustment expenses 0 1,971,145 (1,971,145)
Other expenses 0 1,035,947 (1,035,947)
Taxes, licenses and fees 0 110,000 (110,000)
Net deferred tax liability 2,851 0 2,851
Unearned premium 0 4,352,716 (4,352,716)
Advanced premiums 16,244 153,076 (136,832)
Ceded reinsurance premiums payable 933,185 1,993,828 (1,060,643)
Amounts withheld or retained by company 5,742 0 5,742
Payable to parent, subsidiaries and affiliates 2,056,741 657,483 1,399,258
Aggregate write-ins for liabilities 0 238 (238)
Total Liabilities 3,014,763 19,265,098 (16,250,335)
Common capital stock 3,500,000 3,500,000 0
Gross paid in and contributed surplus 30,120,193 11,000,000 19,120,193
Unassigned funds (surplus) (7,734,988) (3,593,867) (4,141,121)
Surplus as regards policyholders 25,885,205 10,906,133 14,979,072
Total Liabilities, Surplus and Other Funds $28,899,968 $30,171,231 $(1,271,263)
16
AMICA PROPERTY AND CASUALTY INSURANCE COMPANY
Statement of Income
Year Ended December 31, 2014
UNDERWRITING INCOME
Premiums earned $0
DEDUCTIONS:
Losses incurred $0
Loss expenses incurred 0
Other underwriting expenses incurred 1,014,644
Total underwriting deductions 1,014,644
Net underwriting gain or (loss) (1,014,644)
INVESTMENT INCOME:
Net investment income earned 220,566
Net realized capital gains or (losses) 8,677
Net investment gain or (loss) 229,243
OTHER INCOME:
Net gain or (loss) from agents’ or premium balances charged off (269,204)
Finance and service charges not included in premiums 166,252
Total other income (102,952)
Net income, before dividends to policyholders, after capital gains tax
and before all other federal and foreign income taxes (888,353)
Dividend to policyholders 0
Net income, after dividends to policyholders, after capital gains tax
and before all other federal and foreign income taxes (888,353)
Less: Federal and foreign income taxes incurred (813,067)
Net Income (Loss) $(75,286)
17
AMICA PROPERTY AND CASUALTY INSURANCE COMPANY
Capital and Surplus Account
December 31, 2013 to December 31, 2014
Surplus as regards policyholders, December 31, 2013 $27,189,163
Net income (75,286)
Change in net deferred income tax (530,954)
Change in nonadmitted assets (697,718)
Change in surplus as regards policyholders for the year (1,303,958)
Surplus as regards policyholders, December 31, 2014 $25,885,205
18
AMICA PROPERTY AND CASUALTY INSURANCE COMPANY
Reconciliation of Capital and Surplus
December 31, 2010 to December 31, 2014
Capital and Surplus, December 31, 2010 $10,906,133
Gains Losses
Net Income 3,409,989
Change in net unrealized capital gains or(losses) less
capital gains tax 11,242
Change in deferred income tax 2,851
Change in non-admitted assets 717,039
Surplus adjustment-paid in 19,120,193
19,120,193 4,141,121
Net (decrease) in capital and surplus 14,979,072
Capital and surplus December 31, 2014 $25,885,205
19
AMICA PROPERTY AND CASUALTY INSURANCE COMPANY
Analysis of Examination Adjustments
December 31, 2014
The examination of the Company performed as of December 31, 2014, did not disclose any
material misstatements to the financial statements contained in its 2014 Annual Statement
filing. Accordingly, the amounts reported by the Company have been accepted for purposes
of this report.
20
ASSETS
Bonds $14,134,277
The above amount is the net admitted value of bonds held by the Company at
December 31, 2014 and the same as that reported in its 2014 Annual Statement. The majority
of the bonds are held under the terms of a custodial agreement with a third party.
Approximately 7.6% ($1,070,174) of the bond portfolio is held by the State of Rhode Island
in the form of a special deposit.
One hundred percent (100%) of all bonds in the Company’s portfolio at December 31, 2014,
were rated as Class 1 or Class 2, based upon evaluation methods established by the National
Association of Insurance Commissioners Securities Valuation Office. Securities rated as Class
1 and Class 2 are considered “highest” and “high quality” respectively.
The book value, par value, fair value and actual cost of the bond portfolio as of
December 31, 2014, are as follows:
Actual Cost Fair Value Par Value Book/
Adjusted
Carrying
Value
$14,216,316 $14,744,717 $13,687,972 $14,134,277
21
LIABILITIES
Losses and Loss Adjustment Expenses $0
Losses: $0
Loss Adjustment Expenses: $0
The reserves for losses and loss adjustment expenses as reflected above are the same as that
reported by the Company in its 2014 Annual Statement. The Company’s recorded reserves
were reviewed for adequacy by INS Consultants, Inc. (“INS”), the consulting actuaries for the
Rhode Island Insurance Division. On the basis of the review performed by INS Company’s
recorded reserves were found to be computed in accordance with accepted loss reserving
standards and principles and make a reasonable provision for all unpaid loss and loss
adjustment expense obligations under the terms of its policies and agreements. The
Company’s appointed actuary, KPMG LLP (“KPMG”), also concluded that the reported
reserves make reasonable provision, in the aggregate, for all unpaid loss and loss expense
obligations of the Company under the terms of its policies and agreements.
As described in the “Reinsurance” section of this examination report, the Company participates
in a Quota Share Reinsurance Agreement with its parent, Amica Mutual Insurance
Company. Under the terms of the Quota Share Reinsurance Agreement, the Company shall
cede and Amica Mutual shall accept a 100% quota share participation of the Company’s net
liability on risks under all binders, policies, contracts, certificates and other obligations of
insurance or reinsurance.
22
CAPITAL AND SURPLUS
Capital and Surplus $25,885,205
The above balance is the same as that reported by the Company in its 2014 Annual Statement
and consists of the following:
Common Capital Stock $3,500,000
Gross Paid In and Contributed Surplus 30,120,193
Unassigned Funds (Surplus) (7,734,988)
Surplus as Regards Policyholders $25,885,205
SUBSEQUENT EVENTS
Inquiry was made of the Company’s management regarding subsequent events. Based upon
our inquiry, the following transactions were disclosed.
On December 22, 2015, Amica Lloyds of Texas was converted to a stock company, Amica
Texas Insurance Company. Then on December 31, 2015, Amica Texas Insurance Company
merged with Amica Property and Casualty Insurance Company, with Amica Property and
Casualty Insurance Company continuing as the surviving entity of the merger. As a result of
the merger, Amica Property and Casualty Insurance Company assumed all remaining assets
and liabilities of Amica Texas Insurance Company as of December 31, 2015, as well its surplus
of $75,030,293.
Immediately subsequent to the aforementioned merger and also occurring on
December 31, 2015, Amica Property and Casualty Insurance Company paid a dividend of
$23,000,000 to Amica Mutual Insurance Company. The dividend was deemed extraordinary
and was approved by the Rhode Island Division of Insurance on December 30, 2015.
23
Effective December 31, 2015, Amica Lloyd’s of Texas, Inc., an attorney-in-fact and a wholly-
owned subsidiary of Amica Mutual Insurance Company, was dissolved.
CONCLUSION
We have applied verification procedures to the data and information contained in this report
using sampling techniques and other examination procedures as deemed appropriate. While
sampling and other examination procedures do not give complete assurance that all errors and
irregularities will be detected, had any been detected during the course of this examination,
such errors and/or irregularities would have been disclosed in this report. Other than what has
been noted in the body of this report, we were not informed of, and did not become aware of
any errors or irregularities that could have a material effect on the financial condition of the
Company as presented in this report.
Acknowledgment is made of the services rendered by INS Consultants, Inc., the Rhode Island
Insurance Division’s consulting actuaries.
Assisting in the examination with the undersigned were John Tudino Jr., CFE, CIE, CFSA,
Insurance Examiner-In-Charge, Theodore J. Hurley, CPA, CFE, Insurance Examiner-In-
Charge, Debra Almeida, CFE, Senior Insurance Examiner, and Anthony Humphrey, Insurance
Examiner.
Respectfully submitted,
Louis A. Gabriele, CPA, CFE
Insurance Examiner-In-Charge
Rhode Island Insurance Division
