The Circuit Court of Cook County, Ill. has granted Insurance Director Nathaniel S. Shapo’s petition to place Illinois Earth Care Workers Compensation Trust into liquidation. The Illinois group workers’ compensation self-insurance pool was placed under an Order of Liquidation on Oct. 26 based on the Department of Insurance’s findings that the pool was insolvent by at least $6 million.
Earth Care has been in conservation since August 19, 1999.
Shapo had previously ordered the company to assess its members in an amount sufficient to cure the deficiencies in its financial condition. However, Earth Care has been unable to recover adequate funds from its members, and the Shapo moved to place the company into liquidation for the protection of claimants and creditors.
Simultaneously, Shapo has acted as receiver and has ceased paying all claims.
Illinois Earth Care Workers’ Compensation Trust was organized in December 1992 under the Illinois Workers’ Compensation Act for the purpose of administering a program of group self-insurance for workers’ compensation loss exposures for selected members of the Land Improvement Contractors of America.
The Trust’s most recent financial statements reflect approximately $3 million in direct premium as of December 31, 1998. The liquidation order contains an injunction prohibiting suits against the trust outside of the liquidation proceedings.
Topics Workers' Compensation Talent Illinois
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