The Illinois Department of Insurance reported that Public Service Insurance Co. (Public Service) and its parent corporation Public Service Mutual Holding Co. have been placed into rehabilitation.
Policies will continue in force and policyholder claims will continue to be paid in the ordinary course of business, 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 located in New York City, New York. 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.
The Agreed Order of Rehabilitation was entered against the company by Circuit Court of Cook County, Illinois. Illinois Director of Insurance Jennifer Hammer has been affirmed as the statutory rehabilitator for the companies.
As of Dec. 31, 2016, Public Service had a statutory surplus of $28,264,847 as it relates to policyholders.
The Order of Rehabilitation authorizes Hammer to pay claims by or against the Public Service policyholders as well as assumed reinsurance claims in the ordinary course of business as they come due.
A copy of the Order of Rehabilitation and additional information can be obtained at www.osdchi.com or by calling the Office of the Special Deputy Receiver at 312-836-9500.
Source: Illinois Department of Insurance
Topics Illinois
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