Wonder trouble.(Wonder State Life Insurance Co)(Brief article)

It looks like there are more problems for Wonder State Life Insurance Co. of Little Rock, which is being liquidated.

Last month, Arvest Bank named WSLIC Properties LLC, Wonder State and Wonder State's owner, Ralph G. Olsen II, in a lawsuit in an attempt to collect on a defaulted loan of $296,000.

Arvest said that in September 2005 WSLIC took out the loan so it could buy two office units in Little Rock, according to the lawsuit filed in Pulaski County Circuit Court.

In addition to the property used to secure the loan, Olsen and Wonder State guaranteed payment to the bank.

The bank said it wants to foreclose on the property and receive a judgment against the defendants for the amount of the loan and interest, which is more than $270,000.

We couldn't reach Olsen for comment.

In March, the Arkansas Insurance Department received an order to liquidate the company. Wonder State had been pushed into receivership in January because it failed to maintain a minimum capital and surplus requirement of $115,000. On Dec. 17, it had a capital and surplus deficiency of $438,601, according to documents filed in the case.

These days, the insurance department is collecting assets of Wonder State, handling its claims and working to find another company to buy its remaining policies.

At the end of 2007, Wonder had an Arkansas premium of nearly $42,000 and assets of $1.9 million. Its liabilities at the time were $1.6 million.

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