National Public Finance Guarantee Corp., an indirect subsidiary of MBIA Inc. (MBI), confirmed that the New York State Insurance Department has ordered Financial Guaranty Insurance Co. or FGIC to suspend paying claims as of November 24.
The NYSID has ordered to suspend paying claims as the FGIC is in violation of the state's minimum capital requirements, will not affect the status of National's coverage of the FGIC public finance policies reinsured by National.
National's coverage of the FGIC policies covered under the reinsurance agreement will remain in effect with any claims payable directly by National.
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