Attorney General Tish James also is checking to see if the bond compony can actually cover the bond IN New York….
Under focus it seems that Knight Speciality Insurance Company does NOT the ability to cover the $175M it has pledged to HAVE to cover Trump’s bond….
She is also moving to get the state more information on the assets pledged for the bond….
The amounts that maybe listed could be a fiction….
There is now a 10 day clock working against the appeal cover money, which seems to NOT be ok for the court and Attorney General….
Trump & Co. maybe scrambling to find another sucker to help Trump duck the $450M + judgement plus interest…
The New York Attorney General on Thursday called into question whether the company that swooped to post a $175 million bond for former President Donald Trump is actually good for the money—or is even allowed to operate in the state.
The aggressive move by AG Letitia James came after Knight Specialty Insurance Company—a relatively unknown entity with tangential political connections to the former president—was forced to reveal its finances.
Lawyers for the law enforcement office made a court filing that “hereby takes exception to the sufficiency of the surety,” noting that KSIC is trying to operate “without a certificate of qualification.” Under New York law, state regulators have certain standards to ensure that an insurer is “solvent, responsible and otherwise qualified to make policies or contracts of the kind required.”
The AG has given Trump and his rescuers 10 days to, as government lawyers put it, “justify the surety.”
What’s more, the additional scrutiny has called into question whether this insurance company even has enough money to meet the capital requirements for posting the bond.
On Thursday, Trump’s lawyers posted paperwork listing the finances behind two companies—Knight Specialty Insurance Company and another entity named Knight Insurance Company LTD—which together claim to have assets totalling $2.7 billion. However, only the first of those two is actually listed in the court documents as agreeing to front the money if Trump loses the case.
Knight Specialty Insurance Company alone doesn’t have the “surplus” listed in financial statements to meet the capital requirements for posting the bond. New York law limits how much money state-regulated surety companies can post on a single bond to 10 percent of what’s referred to as the firm’s total “capital and surplus.”
In a midday court filing, the Knight Speciality Insurance Company revealed that it currently only has $138 million in “surplus.” That means the bond it has decided to post for Trump smashes through the 10 percent barrier, topping a whopping 127 percent of the company’s dedicated reserves….