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.

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 Vermont, New Hampshire, New York and New Jersey. 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.”

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.

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.

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.

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).