Washington Insurance Commissioner Mike Kreidler has filed a petition in Thurston County Superior Court to liquidate the Bellevue-based insurer, Cascade National.
In order to protect policyholders, the court gave Kreidler authority to seize Cascade National Insurance Company on Nov. 30, 2004, and place it in receivership to assess its financial and management condition.
Once in receivership, Kreidler determined the company needed a significant infusion of capital in order to continue operating. Last May, the Court approved the Commissioner’s attempt to rehabilitate Cascade through a sale of the company, if a seller with the financial wherewithal to operate the company could be found. While there were several parties interested in purchasing Cascade, only one proposed a viable business plan. However, that party was unable to provide the financial backing to meet the minimum statutory requirements that would have pulled Cascade out of receivership.
A hearing on the petition is scheduled for Nov. 4, 2005, where Kreidler’s office will ask the court to sign the order of liquidation and approve the liquidation plan. Objections to the petition, if any, must be filed with the court and served on the receiver by Oct. 26, 2005.
All policies will be cancelled 30 days after the order is signed. Policyholders will receive written notice of the cancellation and a separate notice and proof of claim. They will have four months from the date the order is signed to file a claim with the receiver.
“Our main concern is that all policyholders who still have coverage under Cascade National take immediate steps to find replacement coverage,” said Kreidler. “Don’t wait until your policy is cancelled – contact your agent today.”
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