Ramona Tire Refutes Rehabilitator's Fraud Claims

SAN DIEGO - Ramona Tire Inc. wholly denies allegations that it underfunded its captive insurer in an effort to defraud Frontier Insurance Co. through a workers' compensation reinsurance agreement. Frontier Insurance Company in Rehabilitation v. Ramona Tire Inc., No. RIC459479 (S.D. Calif).

In its answer to a complaint filed by Frontier's rehabilitator, Ramona refuted claims that it bailed on its promise to make sure that its captive was adequately funded. The rehabilitator says Ramona's captive owes Frontier nearly $600,000 under the quota share reinsurance agreement.

The case is pending in the U.S. District Court for the Southern District of California.