Hawai’i Insurance Commissioner J.P. Schmidt has released the final payments from the estate of the failed insurer HIH America Insurance Company of Hawai’i Inc. HIH Hawai’i has now paid 100 percent of its Hawai’i creditors in full.
“Typically, insolvent companies or bankruptcies are not this successful and normally repay 10 to 20 cents on the dollar to creditors,” explained Schmidt.
Schmidt released $2.7 million to the Hawai’i Insurance Guaranty Association for the future payment of workers’ compensation claims, $1 million to 25 individual HIH Hawaii policyholders, and assets valued at $9 million to the California Insurance Department for moneys owed to the affiliated companies.
“We took control of HIH Hawai’i and guaranteed the uninterrupted payments to all of the workers’ compensation claimants,” said Schmidt. Most of HIH Hawai’i’s hundreds of vendors, creditors and policyholders who were owed in excess of $10 million were paid early in the liquidation proceedings.
HIH Hawai’i was a local corporation that provided workers’ compensation insurance to businesses in the state. Financial troubles at its affiliated insurance companies in California and Nevada and its parent company in Australia made its continued operation hazardous to the public.
The Insurance Commissioner seized control of the operations of HIH Hawai’i on March 30, 2001, and, with court approval, took it into liquidation on May 18, 2001.
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