Illinois Insurance Director Nat Shapo announced that the Cook County Circuit Court has issued an Order of Liquidation with “A Finding of Insolvency” against Oak Casualty Insurance Company.
The finding, issued on Tuesday, followed a determination by the Department of Insurance that the company was insolvent by more than $2.5 million. The bulletin noted that “Oak began business in June 1988 as a Florida domiciled insurance company. In 1997, Oak re-domesticated to Illinois and merged with Industrial Casualty Insurance Company, with Oak continuing as the surviving entity. Oak is a wholly owned subsidiary of Preferred Casualty Holdings, Inc., a privately held Illinois holding company.”
The company was licensed in Illinois, Florida, and West Virginia, writing mainly passenger non-standard automobile liability, and physical damage policies, as well as individual accident and health coverages. It has been in runoff and has written no new business since August 2002.
The Department’s announcement stated that “The company’s active automobile insurance business will be canceled 31 days from the date 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 auto claims of Oak Casualty’s Illinois policyholders.”
It went on to note that “The company’s accident and health business was not canceled pursuant to the liquidation order, and will continue in-force provided applicable premiums are paid, subject to the statutory limitations of the Illinois Life and Health Guaranty Association. The Guaranty Association will be responsible for the covered health claims of all Illinois policyholders up to $300,000 per person until the policies can be terminated according to their provisions, or transferred to another viable insurance company.”
“The Guaranty Association and Liquidator will cooperate in an effort to ensure that services to policyholders are provided in accordance with the association’s powers and duties. The liquidation order contains an injunction prohibiting suits against Oak Casualty outside of the liquidation proceedings. The liquidation proceedings are being handled on behalf of the Director of Insurance by the Office of the Special Deputy Receiver, 222 Merchandise Mart Plaza, Suite 1450, Chicago, IL 60654; (312) 836-9500,” the bulletin concluded.
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