INSURANCE

Garamendi Slams Inter-American: California Insurance Commissioner John Garamendi has ordered Inter-American Insurance Co. of Illinois to cease writing new and renewal insurance and to reverse a loan and two other transactions. In the order, Garamendi objected to four actions by Inter-American: the collateralization of a $2.3-million loan to the firm’s parent; the listing of non-admissible real estate asset valued at $350,000; a complex reinsurance arrangement involving transferal to the company of stock and mortgage not approved by the Department of Insurance, and a sale and repurchase of an interest in a high-risk securities partnership that inflated the value of the interest.