Western General Insurance Co. is in conservatorship

The California Superior Court for the County of Los Angeles appointed California Insurance Commissioner Ricardo Lara conservator of Western General Insurance Co., on May 26, 2021. Western General Insurance Co.—which is licensed in several states, including Connecticut, New Jersey and New York—was put into conservation after failed attempts to find a buyer for the company or its book of business to protect policyholders, claimants, creditors and the public. Lara will be doing a thorough review of the company’s books and records to determine if the company can be rehabilitated and can continue to do business as a financially stable insurance company. For more information, visit the California Conservation & Liquidation Office’s frequently asked questions about this conservatorship.

Windhaven National Insurance Co. in liquidation

The district court of Travis County, Texas entered an order of liquidation for Windhaven National Insurance Co. on March 5, 2020. The company is licensed in 36 states, including Connecticut. Per the liquidation order, all policies from this company will be canceled on the expiration date of the policy; Saturday, April 4, 2020, at 12:01 a.m.; or the date that the insured replaces the policy—whichever comes earlier. According to the liquidation order, Windhaven National does not have admitted assets at least equal to all its liabilities together with the minimum surplus of $5 million required to be maintained.

Maidstone Insurance Co. in liquidation

An Order of Liquidation for Maidstone Insurance Co. was entered on Feb. 13, 2020, by the Supreme Court of the State of New York in Nassau County. The company is licensed in 21 states and the District of Columbia, including Connecticut, New Jersey, New York and Vermont. The liquidation order states all Maidstone Insurance Co. policies will be canceled on the expiration date of the policy or effective Sunday, April 12, 2020, at 12:01 a.m., whichever is earlier. The bar date set for the receipt of claims and supporting evidence is one year after the date the order is signed. Any claims received after this date will not be considered for payment. All persons who have first-party policyholder claims are enjoined and restrained from presenting and filing claims with the liquidator for a period of 90 days from the date the order is signed.

Syncora's shareholders approve liquidation

Syncora Holdings Ltd.’s shareholders overwhelmingly approved the liquidation plan for Syncora Guarantee Inc., on Jan. 28, 2020. Based on shareholders of record (as of Jan. 28, 2020), the company distributed $415 million to shareholders on Jan. 31, 2020. The shareholders also approved the merger of Syncora Holdings U.S. Inc., into its parent company Syncora Holdings.

ReliaMax Surety Co. in liquidation

An Order of Liquidation for ReliaMax Surety Co. was entered June 27, 2018, by the Sixth Judicial Circuit Court of South Dakota. The company is licensed in New York and is a surplus-lines insurer in Connecticut, New Hampshire, New Jersey and Vermont. The order states all policies, bonds and other non-cancelable business in force at the issuance of an order continue in force no later than July 27, 2018, at 11:59 p.m. Policies may cancel earlier than this date. The bar date set to receive proof-of-claim forms is Monday, Dec. 31, 2018, at 5 p.m. (CDT). Any claims received after this date will not be considered for payment. For the proof-of-claim form and instructions, click here. For a Q&A, click here.

CastlePoint National Insurance Co. bar date

CastlePoint National Insurance Co. entered liquidation on March 30, 2017, and the bar date set for the receipt of claims is Dec. 31, 2017. Any claims received after this date will not be considered for payment. All open claims as of March 31, 2017, that are eligible for insurance guaranty association coverage are with the appropriate guaranty fund. These claims are considered filed with the guaranty fund and a proof-of-claim form is not required to be filed unless the guaranty fund requests it. Claims generated by certain CastlePoint nonadmitted carriers are not covered by guaranty funds, but policyholders are entitled to submit a proof-of-claim against the residual assets of the CastlePoint estate. Policyholders with general liability occurrence coverage when there is a possibility of the presentation of a late claim, are encouraged to file a proof-of-claim and mark the claim as “Contingent and Undetermined.”

Public Service Insurance Co. and Public Service Mutual Holding Co. policies to cancel

The Illinois director of insurance, acting as rehabilitator for Public Service Insurance Co. and Public Service Mutual Holding Co., has issued a letter to interested parties looking to enter into a novation transaction.

Based on the authority conveyed in the rehabilitation order, the rehabilitator plans to cancel all of Public Service Insurance Co.’s in-force policies, effective Friday, June 30, 2017, unless they expire earlier on their own terms. Public Service Insurance Co. and its affiliates, Paramount Insurance Co. (New York, N.Y.) and Western Select Insurance Co. are collectively referred to as Magna Carta Cos.

The Illinois Office of the Special Deputy Receiver issued an FAQ to answer some common questions. Please note: The answer to the “What will happen to my policy?” question in the FAQ is no longer accurate based on the rehabilitator’s plans to cancel all in-force policies. More information is available from the Illinois Office of the Special Deputy Receiver at http://www.osdchi.com/open/psic.htm.

PIA offers members information through its QuickSource Document Service on company rehabilitation issues. These may be found at: Connecticut, New Hampshire, New Jersey, New York and Vermont.

PIA will continue to monitor this situation and update association members as the issue develops. If you have any additional questions, please contact PIA’s Industry Resource Center at resourcecenter@pia.org. 

CastlePoint National Insurance Co. in liquidation

An Order of Liquidation for CastlePoint National Insurance Co. was entered last week by the San Francisco County Superior Court. CastlePoint National Insurance Co. is successor by merger with the following companies prior to conservation: Tower Insurance Co. of New York; Tower National Insurance Co.; CastlePoint Florida Insurance Co.; Massachusetts Homeland Insurance Co.; York Insurance Co. of Maine; Hermitage Insurance Co.; North East Insurance Co.; Preserver Insurance Co.; and CastlePoint Insurance Co. The company is licensed in all states and the District of Columbia, except for New Hampshire, North Carolina, Montana and Wyoming. The commissioner has implemented a plan prefunding the payment of workers’ compensation indemnity (wage replacement) benefits for the first 60 to 90 days of the liquidation to protect injured workers. The bar date set for the receipt of claims is Sunday, Dec. 31, 2017. Any claims received after will not be considered for payment.

Public Service Insurance, Public Service Mutual Holding in rehabilitation

An Order of Rehabilitation for Public Service Insurance Co. and Public Service Mutual Holding Co. was entered on March 16, by the Circuit Court of Cook County, Ill., and appoints the director of insurance as rehabilitator. Public Service Insurance Co. is licensed in all 50 states, including the District of Columbia. Until further notice, all insurance claims will continue to be paid in the ordinary course of business. .

Penn Treaty Network America and American Network Insurance Cos. in liquidation

An Order of Liquidation for Penn Treaty Network America and American Network Insurance Cos., was entered on March 1, 2017, by the Commonwealth Court of Pennsylvania. The company is licensed in all 50 states and the District of Columbia. The liquidation order states the transfer of the policy obligations to the state guaranty funds will take effect no later than 30 days from the date of the liquidation order, including the continued payment of claims and continued coverage arising under the policies.

Update issued on HealthyCT

CT Connecticut Insurance Department Insurance Commissioner Katharine L. Wade last week issued an update on the rehabilitation proceedings surrounding HealthyCT Inc.

HealthyCT Inc. in liquidation

An Order of Liquidation for HealthyCT Inc. was entered on Dec. 9, 2016, by the Superior Court, judicial district of Hartford, Conn. All policies/certificates will terminate as follows: group policies or contracts, the earlier of the next renewal date under the policy or contract or 45 days, but not less than 30 days, after the liquidation; individual policies terminate by their own terms Dec. 31, 2016; the date the insured replaces the policy’s insurance coverage with insurance in another insurer or otherwise terminates the policy or the date that the liquidator effects a transfer of the policy obligation to a solvent assuming insurer. Third-party claims from health-care providers need to be submitted no later than July 31, 2017, and any claims submitted after this date will be forever barred. A copy of the liquidation order can be obtained here.

HealthyCT Inc. heading toward liquidation

As rehabilitator of the health co-op, HealthyCT Inc., Connecticut Insurance Department Insurance Commissioner Katherine L. Wade has determined the efforts to rehabilitate the company have been unsuccessful. A petition for liquidation—with a requested liquidation date effective Dec. 31, 2016—is expected to be filed in early December. This means HealthyCT group insurance coverage is expected to end Jan. 31, 2017. It is important for employers to enroll in other health insurance immediately to afford their employees continuous health insurance coverage. It is anticipated claims for health-care services will continue to be paid by HealthyCT until Dec. 31, 2016, and once the liquidation order is effective, the Connecticut Life and Health Insurance Guaranty Association will fund eligible health-care claims. PIACT will continue to monitor this situation and keep members apprised of any new developments. More …

PIACT staff meets with CID to discuss HealthyCT

A state superior court judge recently placed Connecticut’s consumer-operated and oriented plan HealthyCT on rehabilitation, and it is set to shut down by the end of the year. Following the announcement, PIACT Government Affairs Counsel Sarah Coli, Esq., and Legislative Representative James O’Brien, Esq., met this week with Connecticut Insurance Department Deputy Insurance Commissioner Tim Curry and Special Deputy Rehabilitator Dan Watkins to discuss this wind-down process and its possible effect on agents and brokers in the state. Commissions paid by carriers, which now are not being passed onto brokers, was a top concern in the meeting. HealthyCT stopped paying commissions as of Oct. 1. Administrators expressed that commissions may not be a top priority in the process. The CID promised to keep PIACT informed about the financials of the co-op and conduct conference calls with your association staff. PIACT will continue to monitor this issue as it unfolds.

CID places HealthyCT under order of supervision

Connecticut Insurance Department Insurance Commissioner Katharine L. Wade announced July 5, 2016, that based on hazardous financial standing, the CID has placed HealthyCT under an immediate order of supervision, which prohibits the company from writing new business or renewing existing business in Connecticut in order to protect its existing policyholders. Since HealthyCT’s inception, the CID has met monthly with the company to monitor its financial solvency, its business plan and operations.

Lincoln General Insurance in liquidation

An Order of Liquidation for Lincoln General Insurance Co. was entered Nov. 5, 2015, by the Commonwealth of Pennsylvania. The company is licensed in all 50 states and the District of Columbia. The order states all policies will remain in force until: the stated expiration date of the insurance policy; the effective date of a replacement insurance policy; the effective date the policy obligation is transferred to another insurer; or the cancellation of all insurance policies 30 days from the date of the order. The bar date set to receive proof of claim forms is Wednesday, July 6, 2016, at 5 p.m. Any claims received after this date will not be considered for payment. For the proof of claim form and instructions, go to http://bit.ly/1OkJdR8. For a Q&A, go to http://bit.ly/1mYD9UU.

Affirmative Insurance Co. in rehabilitation

An Order of Rehabilitation for Affirmative Insurance Co. was entered on Sept. 16, 2015, by the Circuit Court of Cook County, Illinois, and appoints the acting director of insurance as rehabilitator. Affirmative Insurance Co. consented to the Order of Rehabilitation and is licensed in several states, including Connecticut. Affirmative's current policies will remain in force through expiration of the current term unless otherwise canceled or nonrenewed based on applicable state law. Affirmative will not issue any new policies of insurance. Until further notice, all insurance claims will continue to be paid in the ordinary course of business. A copy of the rehabilitation order can be obtained here.

Lumbermen's Underwriting Alliance in rehabilitation

An Order of Rehabilitation for Lumbermen's Underwriting Alliance was entered on May 19, 2015, by the Circuit Court of Cole County, Missouri. Lumbermen's Underwriting Alliance consented to the Order of Rehabilitation. Lumbermen's Underwriting Alliance is licensed in 48 states, including New York, New Jersey Connecticut, New Hampshire and the District of Columbia. The order prohibits all actions or proceedings in Missouri, including any arbitrations, the carrier is a party or obligated to defend a party are stayed for a period of 90 days from the date of the order. The rehabilitator has provided the court with evidence sufficient to support the conclusion Lumbermen's Underwriting Alliance is in such condition that its further transaction of business would be hazardous financially to its policyholders, creditors or the public.

Lumbermen's Underwriting Alliance placed under regulatory supervision

On Feb. 27, 2015, the Missouri Department of Insurance placed Lumbermen's Underwriting Alliance under regulatory supervision. The action was taken based on a $22.5 million deficit position stated in its recently filed year-end 2014 statutory balance sheet, which resulted from an unexpected shortfall in collateral held relating to its largest subscriber filing for Chapter 11 bankruptcy on Feb. 2, 2015. The company is a specialty commercial carrier writing property/casualty insurance for assisted-living facilities, the forest product industry, the food processing industry and professional employer organizations. Lumbermen's Underwriting Alliance is licensed in 48 states, including New York, New Jersey, Connecticut, New Hampshire and The District of Columbia. Based on this action, A.M. Best has downgraded the carrier's financial strength to "E" (under regulatory supervision) from "B+" (Good).

Eveready Insurance Co. in liquidation

An Order of Liquidation for Eveready Insurance Co. was entered on Jan. 29, 2015, by the Supreme Court of the State of New York, New York County with the consent of Eveready Insurance Co. The company issued private-passenger automobile liability, physical damage and commercial auto liability insurance policies to its policyholders and is licensed in the state of New York. The order prohibits claims from being submitted or paid for a period of 180 days from the date of the order and 90 days for first-party claims. All existing insurance policies of Eveready shall terminate at 12:01 a.m. on the earliest of 30 days from the entry of this order. The proof-of-claim filing deadline was May 29, 2015. All claims must be filed prior to the close of business on Jan. 29, 2016, and any claims filed after will not be considered for payment.