Wis. Seeks OK To Pay $3.2B In Ambac MBS-Related Claims

Law360, New York (May 17, 2012, 5:45 PM EDT) -- The Wisconsin insurance commissioner on Wednesday filed a proposal to start making interim payments on $3.2 billion worth of claims Ambac Assurance Corp. policyholders have lodged against a segregated account that holds Ambac's riskiest policies, including ones that insured mortgage-backed securities.

Commissioner Theodore K. Nickel asked for permission to pay 25 percent of each claim received since Wisconsin began rehabilitating the principal operating subsidiary of bankrupt Ambac Financial Group Inc. in 2010, according to motions the Office of the Commissioner of Insurance filed in Wisconsin district...
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