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Questions & Answers > General > What happened on March 24?

The following questions and answers are provided to the general public for informational purposes only. They are not legal documents and do not bind the Segregated Account of Ambac Assurance Corporation, the Office of the Commissioner of Insurance, or the Rehabilitator to any position or interpretation of the rehabilitation court's orders in these proceedings, now or in the future. Interested parties should review the court documents available on this site and consult their own legal counsel with any questions they may have regarding any effect this rehabilitation proceeding may have on their legal rights and obligations.

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The Ambac Board of Directors voted to create a Segregated Account and consented to Rehabilitation of that account by the Wisconsin Commissioner of Insurance. Under Wisconsin law, the Segregated Account is treated as a separate insurer from Ambac Assurance Corporation (AAC).

The Office of the Commissioner of Insurance of the State of Wisconsin (OCI) subsequently filed a petition to rehabilitate the Segregated Account. Wisconsin law provides numerous grounds warranting rehabilitation proceedings, including a determination by OCI that an insurer is in a condition that is financially hazardous to creditors, policyholders, and the public. OCI made that determination here. OCI’s brief in support of rehabilitation contains a more thorough discussion of Wisconsin law and the grounds for rehabilitation of the Segregated Account. The rehabilitation court granted OCI’s petition for rehabilitation of the Segregated Account and entered an order enjoining certain actions by Segregated Account policyholders.

This rehabilitation only relates to those policies and other interests that have been allocated to the Segregated Account, a list of which is available here. OCI has not filed a petition to rehabilitate AAC as a whole, and the AAC policies and other interests that were not allocated to the Segregated Account are not subject to this rehabilitation proceeding.

Last updated on March 27, 2010 by Ambac Policyholders Administrator