The Illinois Department of Insurance has placed Public Service Insurance Co. (Public Service) and its parent corporation, Public Service Mutual Holding Co., into rehabilitation.
Policies will continue in force and claims will continue to be paid, the department said. Policies in force on March 16, 2017, will remain in place until their contractual expiration date.
Public Service is an Illinois domestic stock property/casualty insurance company. It previously was organized as a mutual insurance company. Upon conversion to a stock company it became a subsidiary of Public Service Mutual Holding Co.
As of Dec. 31, 2016, Public Service had a statutory surplus of $28,264,847 as it relates to policyholders.
In July 2016, A.M. Best downgraded and then pulled the ratings of Public Service Insurance Co. and its affiliates. The company reported a nearly $60 million surplus loss for 2015 that included underwriting losses, Best said.
Illinois Director of Insurance Jennifer Hammer was named statutory rehabilitator for the companies. The Order of Rehabilitation authorizes Hammer to pay claims by or against the Public Service policyholders, as well as assumed reinsurance.
A copy of the rehabilitation order is available online at www.osdchi.com or by calling the Office of the Special Deputy Receiver at 312-836-9500.
Topics Illinois
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