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Company insolvencies

Contents

July 2021

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.

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 2021

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. n 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.

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.

November 2017

Guarantee Insurance Co. in liquidation

An Order of Liquidation for Guarantee Insurance Co. entered by the second circuit court in Leon County, Florida on Nov. 27, 2017. The company is licensed in 40 states and the District of Columbia, including New York, New Jersey, 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.”

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

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.

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.

August 2016

ELANY advises about Tower insurer insolvencies

In September 2014, 10 insurers owned by Tower Group International Ltd. were sold to ACP Re and put into runoff. The renewal rights to the business written in these 10 insurers were sold as a separate asset to other insurers. These 10 insurers have now been merged into Castlepoint National Insurance Company, a California domiciled insurance company. On July 28, 2016, a California Superior Court issued an order appointing the California Insurance Commissioner the conservator of this insurer. The commissioner has filed a proposed motion for an Order Approving Conservation and Liquidation Plan. A hearing on that matter is scheduled for Sept. 13, 2016. This likely will lead to a New York court order directing producers to take certain steps regarding the runoff business consolidated into Castlepoint National and also trigger the state guaranty fund. More ...

April 2016

NYDFS files with the NYS Supreme Court to liquidate Health Republic

The New York State Department of Financial Services is taking steps to protect New York state consumers by filing with the Supreme Court to start liquidation proceedings for Health Republic. The liquidator will develop and file with the court a plan of liquidation to maximize the distributions to claimants and to minimize the duration and cost of the liquidation proceeding. Providers can continue to submit claims against Health Republic taking into consideration the deadlines set forth in their contracts. Consumers who have paid for covered services out-of-pocket and are owed money by Health Republic can obtain information here. More …

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.

Health Republic providers, brokers want state funds

The state is estimated to have more than $1 billion in surplus funds when it puts together the 2016 budget. The New York State Association of Health Underwriters called on Gov. Cuomo and state lawmakers to use part of the surplus to cover Health Republic's unpaid bills to providers and brokers. Health Republic providers and insurance agents performed millions of dollars in uncompensated work after Health Republic was shut down by state and federal regulators in November.

November 2015

Additional actions taken to protect Health Republic of New York consumers

The New York State Department of Financial Services and the New York State of Health marketplace have issued a press release, which details additional actions being taken to protect consumers of Health Republic Insurance of New York. To ensure continuity of care and coverage for individuals, the enrollment deadline has been extended to Nov. 30, 2015, to allow consumers the time to choose a new coverage plan for the remainder of 2015.

New York state has taken additional action to ensure continuous coverage for consumers of Health Republic Insurance of New York by creating an auto-enroll option to place coverage with new health insurance plans. More details will be provided on the auto-enrollment option soon.

The NYDFS will continue to investigate the financial condition of Health Republic Insurance of New York and has required Health Republic's board of directors to consent to the appointment of an independent monitor to oversee the affairs of the company. Based on this directive, Alvarez & Marsell will be taking over the management of the carrier, as its chief restructuring officer.

For a copy of the Nov. 8 press release, which includes a comprehensive fact sheet, go to: http://www.dfs.ny.gov/about/press/pr1511081.htm.

More information is available in the department's previous press releases of Oct. 30 and Sept. 25.

Consumers with questions can call the New York State of Health's customer service helpline at (855) 329-8899 between 8 a.m.-8 p.m. (Monday through Friday) and 9 a.m.-1 p.m. on Saturday. Coverage issued with an effective date of Dec. 1, 2015, will be effective through Dec. 31, 2015.

Consumers can enroll for 2016 coverage with the New York State of Health marketplace during the open-enrollment period starting Nov. 1, 2015, and select a plan by Dec. 15, 2015, to be covered on Jan. 1, 2016. To view an interactive county map, which shows the health plans offered on the marketplace (by county), click here.

Consumers can contact the NYDFS Consumer Hotline with questions regarding Health Republic by calling (800) 342-3736. The hotline hours are weekdays (Monday through Friday) from 8 a.m.-8 p.m., and Saturday from 9 a.m.-1 p.m.

Automatic enrollment details announced for the protection of Health Republic Insurance of New York consumers

The New York State Department of Financial Services and the New York State of Health marketplace have issued a press release, which details how the auto-enroll will protect consumers of Health Republic Insurance of New York. To ensure continuity of care and coverage for individuals covered by Health Republic Insurance of New York, Fidelis Care, Excellus Blue Cross Blue Shield and MVP Health Care have agreed to auto-enroll individuals whose coverage would end by Nov. 30, 2015. Individuals covered by Health Republic Insurance of New York who have not selected a new health plan by Dec. 1, 2015, will auto-enroll with one of these carriers and any deductible and out-of-pocket amounts that consumers have already paid through their Health Republic coverage during 2015 will be credited. This is intended to ensure that individuals who make the transition will not be required to restart payments in 2015.

By the third week of November, the New York State of Health marketplace will send an auto-enrollment form to individuals who were covered by Health Republic Insurance of New York, but have not selected a new health plan for Dec. 1, 2015, showing the carriers with which they will be auto-enrolled based on their county of residence. For complete details on how consumers will be affected, see the NYDFS's Nov. 13 press release.

More information is available in the department's previous press releases of Oct. 30 and Sept. 25, as well as the Nov. 8 press release, which includes a comprehensive fact sheet.

Consumers with questions can call the New York State of Health's customer service helpline at (855) 329-8899 between 8 a.m.-8 p.m. (Monday through Friday) and 9 a.m.-1 p.m. on Saturday. Coverage issued with an effective date of Dec. 1, 2015, will now be effective through Dec. 31, 2015.

Consumers can enroll for 2016 coverage with the New York State of Health marketplace during the open-enrollment period starting Nov. 1, 2015, and select a plan by Dec. 15, 2015, to be covered on Jan. 1, 2016. To view an interactive county map, which shows the health plans offered on the marketplace (by county), click here.

The NYDFS Consumer Hotline is open for questions regarding Health Republic at (800) 342-3736. The hotline hours are weekdays (Monday through Friday) from 8 a.m.-8 p.m., and Saturday from 9 a.m.-1 p.m.

October 2015

State, federal regulators to shut Health Republic

Health Republic Insurance of New York will stop selling policies and eventually cease operations under orders from New York and federal regulators. The order came after regulators found it was likely to become financially insolvent, according to the New York State Department of Financial Services.

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, in which the carrier is a party to 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.

Cigna HealthCare of New York Inc. in liquidation

An Order of Liquidation for Cigna HealthCare of New York Inc. was entered on Jan. 30, 2015, by the Supreme Court of the State of New York, New York County with the consent of Cigna HealthCare of New York Inc. The company is a health maintenance organization domiciled in the state of New York. The proof-of-claim filing deadline was May 30, 2015. All claims must be filed prior to the close of business on Jan. 30, 2016, and any claims filed after will not be considered for payment. It is important to note that health maintenance organizations are not covered by the Life Insurance Company Guaranty Corp. of New York.