Illinois Insurance Director Nat Shapo announced that the Cook County Circuit Court issued an Order of Liquidation with a finding of insolvency against Delta Casualty Company on Dec. 4, following a determination by the Department of Insurance that the company was insolvent by more than $1 million.
Delta Casualty began business in January 1967, and is licensed in Illinois, Florida, and Iowa. The company wrote primarily commercial automobile liability, physical damage, and workers compensation coverages for cab companies in the Chicago metropolitan area, as well as nonstandard private passenger automobile business in the State of Florida. The company discontinued all of its commercial cab business in Dec. 2000 and its nonstandard Florida automobile business in March 2001. At Dec. 31, 1999, and Dec. 31, 2000, the company reported direct written premiums of $6.8 million and $8.8 million, respectively.
Any remaining business currently active in a state in which the company was licensed will be canceled 31 days from the date of the entry of the order of liquidation, the policy’s expiration date, or when canceled by the named insured, whichever occurs first.
The Illinois Insurance Guaranty Fund will be responsible for the covered claims of Delta Casualty’s Illinois policyholders. The order of liquidation contains an injunction prohibiting suits against Delta Casualty outside of the liquidation proceedings.
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