Illinois insurance regulators reported that Millers First Insurance Co. (Millers First) has agreed to be placed into rehabilitation.
While the Alton, Ill.-based company is in rehabilitation, Illinois Department of Insurance (DOI) Director Andrew Boron, as rehabilitator, will continue the payment of policyholder claims and policies will remain in force until the expiration of their term.
Millers First’s board of directors consented to start rehabilitation proceedings on June 22, 2012. The rehabilitation order became effective on July 24.
During the rehabilitation the company will restructure its business and affairs in an effort to return to profitability. Policyholders will continue to receive claim payments, and policyholder coverage will remain in force until policy expiration. The company will provide timely notices of non-renewal to its policyholders, unless and until its financial condition improves, the department said.
Millers First was organized in 1877 as a mutual insurance company whose members were operators of flour mills, according to information on the company’s website. It later changed to a stock company and is now a subsidiary of Illinois-based Affiliated Mutual Holding Co. (Affiliated Mutual).
Illinois regulators noted that the order of rehabilitation of Millers First does not include its Wisconsin domiciled subsidiary Millers Classified Insurance Co. Business of Affiliated Mutual group was primarily conducted in Illinois, Missouri, Iowa and Wisconsin.