The Circuit Court of Cook County, Ill., has granted Illinois Director of Insurance J. Anthony Clark’s request for the entry of an agreed order of liquidation with a finding of insolvency against Statewide Insurance Co. The liquidation was effective yesterday, Jan. 6, 2004.
Statewide, based in Waukegan, Ill., was incorporated in 1979 and was licensed in 26 states. The company was primarily engaged in the underwriting of commercial multiple peril, workers’ compensation, commercial automobile and umbrella insurance policies and surety bonds. Statewide’s policies were primarily marketed to small general contractors and artisans.
The order of liquidation was based on the finding of the Illinois Department of Insurance that the company’s policyholder surplus was impaired by an amount in excess of $21 million. Statewide’s most recent financial statements reflect approximately $13.7 million in direct premium written during the first ten months of 2003.
The order of liquidation affirms Director Clark’s appointment as statutory liquidator. The liquidator will immediately begin marshaling the company’s assets and identifying its creditors. Subject to statutory coverages and limitations, the Illinois Insurance Guaranty Fund, and similar organizations in other states, will be responsible for the covered claims and the continued defense of Statewide’s policyholders.
The director has appointed Cathleen Travis as his special deputy to assist with the liquidation proceedings. The Office of the Special Deputy Receiver, 222 Merchandise Mart Plaza, Suite 1450, Chicago, Ill. 60654, (312) 836-9500, will be providing administrative services.
Was this article valuable?
Here are more articles you may enjoy.