State Insurance Takeover: Seventh Alternative to Bond Insurance at Risk.

    Government takeover is a seventh alternative to putting Bond Insurance at risk:

    If [Bond Insurance Company] MBIA and [New York State Insurance Superintendent] Mr. Dinallo remain at odds over whether the company needs to do anything, the dispute could end in court, legal experts say.  Mr. Dinallo has significant power as superintendent to take control of insurers if he believes there are not enough assets to pay claims by policyholders, but the company and its policyholders can fend him off if they can prove his decisions are "arbitrary and capricious" ....

Vikas Bajaj, "A Split-Up of Insurers of Bonds Considered" (New York Times Online, Saturday, February 16, 2008).

Please Read The Disclaimer.