NY Attorney General Letitia James asks judge to revoke Trump's $175 million bond in civil fraud lawsuit.  

New York Attorney General Letitia James wants the judge in former President Donald Trump's civil fraud case to nullify his $175 million bond to appeal his New York civil lawsuit.  

James' 26-page filing, obtained by Fox News Digital, questions the insurance company's financial stability.  

Knight Specialty Insurance Company (KSIC), based in California, posted Trump's bond, but James claimed that the insurer was "not authorized" to write business in New York because it is a small insurer that is not regulated by the state's insurance department,  

had never written a surety bond in New York or in the prior two years in any other jurisdiction, and has a $138 million policyholder surplus.  

The report says the firm has $138 million policyholder excess. New York state law prohibits smaller enterprises like KSIC from exposing itself to bonds or losses higher than 10% of their surplus.  

"Based on KSIC’s policyholder surplus in its most recent annual financial statement of $138,441,671, the limitation of loss on any one risk that KSIC is permitted to write is $13.8 million," the lawyers said. "The face amount of the bond exceeds this limitation by $161.2 million."  

James added to the filing that "KSIC is not qualified to act as the surety under this standard because its management has been found by federal authorities   

to have operated affiliated companies within KSIC’s holding company structure in violation of federal law on multiple occasions within the past several years."  

The April 12, 2024 Edition of Your Daily FinanceScope 

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