- Senior Health Insurance Co. of Pennsylvania in rehabilitation
- Syncora's shareholders approve liquidation
- ReliMax Surety Co. in liquidation
- Guarantee Insurance Co. in liquidation
- Massachusetts Division of Insurance takes control of Minuteman Health
- Public Service Insurance Co. and Public Service Mutual Holding Co. policies to cancel
- Public Service Insurance, Public Service Mutual Holding in rehabilitation
- Penn Treaty Network America and American Network Insurance Cos. in liquidation
- Insurance regulators monitoring CHO of Maine's financial health
- Lincoln General Insurance in liquidation
- Lumbermen's Underwriting Alliance in rehabilitation
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.
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.
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.
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 Hampshire, Vermont, 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.
The Massachusetts Division of Insurance announced this week that a court has granted its request to place a Massachusetts-based health-insurance co-op, which insures about 27,000 individual members and three dozen small group members in New Hampshire, into rehabilitation to protect policyholders and their health-care providers. The co-op, Minuteman Health announced in June that it would not offer insurance in 2018 because its capital and surplus had been significantly reduced over time. The New Hampshire Insurance Department had been working closely to monitor the company’s financial health.
According to NHID Commissioner Roger Sevigny, residents who have individual health-insurance policies through Minuteman Health can expect to be covered through the end of 2017. Policyholders will be able to choose a new plan for 2018 through HealthCare.gov. Open enrollment runs from Nov. 1 to Dec. 15.
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 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 email@example.com.
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.
Insurance regulators monitoring CHO of Maine's financial health
The NHID announced recently that it is working with the Maine Bureau of Insurance to monitor and post financial updates on a monthly basis on the financial condition of Community Health Options, which also sells health-insurance plans in New Hampshire. CHO is a consumer-operated and oriented-health plan, or co-op, which began operating in Maine in 2014. It began selling insurance plans in New Hampshire in 2015.
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).
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.