Michigan Orders American Fellowship Mutual Insurance into Liquidation

June 22, 2013

The American Fellowship Mutual Insurance Co. has been ordered into liquidation by Ingham County Circuit Judge William Collette at the request of the Michigan Department of Insurance and Financial Services (DIFS) Director Kevin Clinton.

The request was granted on June 12, 2013, and Director Clinton was appointed liquidator.

American Fellowship, created in 1920, wrote primarily auto and homeowner policies. There are 1,943 policyholders with insurance coverage through American Fellowship. The company’s policies are primarily in southeastern Michigan.

Those policyholders should make arrangements with another insurance carrier as soon as possible as their present coverage will be cancelled effective July 12, 2013.

Consumers may wish to contact an agent to review coverage options.

Consumers with claims against American Fellowship must submit a Proof of Claim form and supporting documents to the DIFS by Dec. 12, 2013.

The form and instructions can be found by visiting www.michigan.gov/difs and selecting the “Who We Regulate” link on the right side of the page. DIFS, under the court’s supervision, is responsible for collecting assets, converting them to cash, and distributing the proceeds to claimants.

Michigan statute provides guaranty association coverage for property and casualty insurance claims. The Michigan Property and Casualty Guaranty Association covers claims up to a maximum of $5,690,000 and unearned premium funds up to a maximum of $1,432.

Source: Michigan Department of Insurance and Financial Services

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