Lumbermens Mutual Casualty, American Manufacturers Mutual Insurance, and American Motorists Insurance Companies have been placed in liquidation in Illinois, according to the state insurance department.
State insurance guaranty associations will pay the companies’ claims, the department said.
Illinois Department of Insurance Director Andrew Boron has been serving as statutory rehabilitator of the companies since July 2012.
“Liquidation was the next step in this process” said Director Boron. “Department of Insurance staff has worked diligently during this transition with interest to the companies’ creditors and customers.”
The court entered an order granting a motion for Substantive Consolidation of the liabilities and assets of the liquidation estates of Lumbermens, American Manufacturers and American Motorists. This order will allow for the equitable distribution of assets on the claims arising in the liquidation proceedings of these three companies, the department said.
The Orders of Liquidation have triggered the obligations of the state insurance guaranty associations to begin paying covered claims obligations of the companies. In preparation for the liquidation of the companies, Director Boron has been working with the National Organization of Life and Health Guaranty Associations and the National Conference of Insurance Guaranty Funds to plan the orderly transition of claim administration responsibilities to the state insurance guaranty associations.
Lumbermens is a mutual property and casualty insurer organized in 1912, and held licenses in 49 states and the District of Columbia.
American Manufacturers is a mutual property and casualty insurer organized in 1837, and held licenses in 49 states and the District of Columbia. American Manufacturers is a member of LMG.
American Motorists also held licenses in 49 states and was organized in 1926.
Lumbermens, American Manufacturers, and American Motorists commenced a voluntary run-off in 2003 and have been operating under a run-off plan filed with and approved by DOI in 2004.
Source: Illinois Department of Insurance
Was this article valuable?
Here are more articles you may enjoy.