Contents

July 2021

Western General Insurance Co. is in conservatorship

AThe 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.

March 2021

An order of liquidation for Bedivere Insurance Co.

An Order of Liquidation for Bedivere Insurance Co. (formerly One Beacon Insurance Co.) was entered on March 11, 2021, by the Commonwealth Court of Pennsylvania. The company is licensed in all 50 states and the District of Columbia, Puerto Rico, the U.S. Virgin Islands, American Samoa and Guam. The liquidation order states that all Bedivere Insurance policies will be canceled at their normal expiration date of the policy, upon replacement or effective Saturday, April 10, 2021, at 12:01 a.m.—whichever is earlier. The bar date set for the receipt of claims and supporting evidence is Friday, Dec. 31, 2021, at 5 p.m. EST. The proof of claim form can be accessed here. 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. A policyholder FAQ is available.

February 2020

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.

January 2020

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.

Senior Health Insurance Co. of Pennsylvania in rehabilitation, Jan. 29

An Order of Rehabilitation for Senior Health Insurance Co. of Pennsylvania was entered on Jan. 29, 2020, by the Commonwealth Court of Pennsylvania, and appoints the commissioner of insurance as rehabilitator. The carrier mostly sold long-term care insurance and home health-care insurance; it has not issued any policies since 2003. Senior Health Insurance Co. of Pennsylvania is licensed in all states except Connecticut, New York, Rhode Island and Vermont. Currently, all court actions, arbitrations and mediations pending against the carrier are stayed for 90 days.

May 2019

Broadway Insurance & Surety Co. Inc. in rehabilitation

An Order of Rehabilitation for Broadway Insurance & Surety Co. Inc. was entered on March 22, 2019, by the Superior Court of NJ Mercer Vicinage Chancery, and appoints the commissioner of insurance as rehabilitator. Broadway Insurance & Surety Co. Inc. is domiciled and licensed in New Jersey.

Public Service Insurance and Public Service Mutual Holding policies to cancel

An Order of Rehabilitation for Public Service Insurance Co. and Public Service Mutual Holding Co. was entered on March 16, 2019, 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.

August 2018

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.

December 2017

Guarantee Insurance Co. in liquidation

An Order of Liquidation for Guarantee Insurance Co. was entered by the second circuit court in Leon County, Fla., on Nov. 27, 2017. The company is licensed in 40 states and the District of Columbia, including New Jersey, New York, New Hampshire and Vermont. The liquidation order states all Guarantee Insurance Co. policies will be canceled effective Wednesday, Dec. 27, 2017, unless otherwise terminated prior to that date. The bar date set for the receipt of claims is May 28, 2018. Any claims received after this date will not be considered for payment. All premiums and unearned commissions collected for Guarantee Insurance Co. must be accounted for and paid directly to the Florida Department of Financial Services within 30 days.

October 2017

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.”

July 2017

DOBI takes action: ANIC's liquidation, provides options for policyholders

The Department of Banking and Insurance Commissioner Richard J. Badolato took action in conjunction with the New Jersey Life and Health Insurance Guaranty Association to address the difficult circumstances caused by the insolvency of American Network Insurance Co., a Pennsylvania insurer that sold long-term care insurance policies in New Jersey. This was necessitated by the March 1, 2017, Order of Liquidation issued by the Commonwealth Court of Pennsylvania, which declared ANIC and its affiliated company Penn Treaty insolvent. The Pennsylvania court’s decision made NJLHIGA responsible for paying the claims of New Jersey residents with ANIC LTC policies.

May 2017

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.

IFA Insurance Co. in liquidation

An Order of Liquidation for IFA Insurance Co. was entered on May 4, 2017, by the Superior Court of New Jersey Chancery Division, Mercer County. The company is licensed in New Jersey, Delaware, Maryland and Pennsylvania. The liquidation order states, “All persons and entities shall be permanently enjoined from pursuing litigation against IFA or interfering with the commissioner’s efforts to liquidate IFA. All claims against IFA must be asserted not later than 180 days from the date of the order of liquidation, in the form established by the commissioner, or such claims will be forever barred.”

April 2017

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.

March 2017

DOBI petitions court to place IFA Insurance Co. into liquidation

Department of Banking and Insurance Commissioner Richard J. Badolato announced that the department has petitioned the Superior Court of New Jersey, Chancery Division to place the Clark-based auto insurer IFA Insurance Co., into liquidation. Last year, the company withdrew from the New Jersey auto insurance market and began the process of running off its business under the department’s supervision.

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.

February 2017

Health Republic Insurance of New Jersey in liquidation

An Order of Liquidation for Freelancers Consumer Operated and Oriented Program of New Jersey (dba Health Republic Insurance of New Jersey) was entered Feb. 3, 2017, by the Superior Court of New Jersey Chancery Division Mercer County. The company is licensed in New Jersey. The Department of Banking and Insurance and Health Republic Insurance of New Jersey assisted consumers and small employers to secure coverage for 2017 as all polices canceled on Dec. 31, 2016. The liquidation order will allow the New Jersey Life and Health Guaranty Association to be able to pay for member and provider claims for reimbursement of covered medical services.

September 2016

DOBI files for rehabilitation of Health Republic Insurance of New Jersey

DOBI Commissioner Richard J. Badolato announced that Freelancers Consumer Operated and Oriented Program of New Jersey, doing business as Health Republic Insurance of New Jersey, has consented to be placed in rehabilitation due to its deteriorating financial condition. If approved by the court, the rehabilitation will enable the department to preserve the assets of the carrier so that consumers continue to receive the care to which they are entitled and medical providers are paid.

January 2016

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.

May 2015

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.

February 2015

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).

January 2015

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.

Freestone Insurance Co. in liquidation

An Order of Liquidation for Freestone Insurance Co., formerly known as Dallas National Insurance Co., was entered on July 22, 2014, by the Delaware Chancery Court. However, to provide additional time for a transition from the rehabilitation proceedings to the liquidation proceedings, the court's liquidation and injunction order with bar date was made effective as of Aug. 15, 2014. The company issued workers' compensation, automobile and general liability insurance policies to its policyholders and is licensed in several states, including New Jersey. 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 Freestone insurance policy insurance obligation is transferred to another insurer; or the cancellation of insurance policies at 12:01 a.m. Sept. 15, 2014. The bar date set for receipt of proof-of-claim forms is Dec. 31, 2015, with all documentation to be received by the close of business that day. Any claims received after this date will not be considered for payment. Instructions for the proof-of-claim form can be obtained here , and the proof-of-claim form can be found here. For an FAQ, click here.