Illinois insurance regulators announced that Lumbermens Mutual Casualty Co. (Lumbermens) and American Manufacturers Mutual Insurance Co. (American Manufacturers) have agreed to being placed into rehabilitation.
The Illinois Department of Insurance said under an Agreed Order of Rehabilitation payment of policyholder claims will continue under the direction of the department’s director.
On June 26, 2012, the board of directors of both Lumbermens, the lead company of the Lumbermens Mutual Group (LMG) and American Manufacturers consented to start rehabilitation proceedings and the entry of an Order of Rehabilitation.
DOI Director Andrew Boron asked for the entry of an Agreed Order of Rehabilitation in his Verified Complaint filed by Illinois Attorney General Lisa Madigan. The rehabilitation became effective July 2, 2012.
The director intends to use the rehabilitation period to work with the National Conference of Insurance Guaranty Funds’ (NCIGF’s) Lumbermens Working Group to prepare for the orderly transition of claim-handling responsibilities to the State Guaranty Funds and Associations once an Order of Liquidation is entered. After this process has been completed, the director intends to file a Verified Complaint for Liquidation.
Lumbermens is a mutual property and casualty insurer that was organized in 1912, and held licenses in 49 states and the District of Columbia.
American Manufacturers is a mutual property and casualty insurer that was organized in 1837, and held licenses in 49 states and the District of Columbia. American Manufacturers is a member of LMG.
Lumbermens and American Manufacturers commenced a voluntary run-off in 2003 and have been operating under a run-off plan filed with and approved by DOI in 2004.
A copy of the Order of Rehabilitation is available at www.osdchi.com or by calling 312-836-9500. The Office of the Special Deputy Receiver (OSD), located at 222 Merchandise Mart Plaza, Suite 1450, Chicago, IL, 60654, is assisting DOI Director Boron with the rehabilitation of Lumbermens and American Manufacturers.
Source: Illinois DOI