A Watertown, S.D., insurance company has been placed into liquidation by state insurance regulators.
A liquidation order issued by the South Dakota Division of Insurance for Northern Plains Insurance Co. was approved on Sept. 18 by Sixth Circuit Court Judge Mark Bennett.
Northern Plains, a high risk auto insurer, is insolvent, according to the liquidation order.
Northern Plains admitted the insolvency and waived service and process notice, the judge noted.
Financial statements submitted by Northern Plains to South Dakota Insurance Director Merle Scheiber showed the company’s “liabilities exceed its admitted assets by at least $104,000,” according to the liquidation documents.
Scheiber was appointed liquidator; Michael FitzGibbons of FitzGibbons and Co. Inc. was appointed special deputy liquidator.
According to information on Northern Plains website, http://www.northernplainsins.com, company policies in effect as of the date of the liquidation order will be terminated upon the lesser of:
(1) 30 days from the date of entry of the liquidation order (i.e. Oct. 18, 2012 at 11:59 pm CST;
(2) the expiration of the policy coverage;
(3) the date when the insured has replaced the insurance coverage with equivalent insurance with another insurer or otherwise terminated the policy; or
(4) the Liquidation has effected a transfer of the policy obligation.
Valid claims will be paid. The deadline for submitting proof of claim is Dec. 15, 2012. All claims submissions must be postmarked by 5:00 pm CST on that date.