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Frequently Asked
Questions |
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What happened to Casualty
Reciprocal Exchange (CRE) & Equity Mutual Insurance Company (EMIC)?
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Casualty Reciprocal
Exchange and Equity Mutual Insurance Company (the “Companies") were
placed into Liquidation on August 18, 2004 because the insurance companies
were insolvent (liabilities in excess of assets). The Cole County Circuit
Court (the “Court”) appointed Scott B. Lakin, Director of the Missouri
Insurance Department, as Liquidator of the Companies.
F. William (“Bill”) Kobusch, IV was appointed Special Deputy
Liquidator (“SDL”) of the Companies by the Missouri Department of
Insurance and approved by the Court.
The following information
will help answer most of your questions about potential claims and the
liquidation procedure. The answers below are generally how liquidations
are handled, but results may differ based upon individual state laws and
guaranty fund procedures and future Orders issued by the supervisory
Court. You may direct all additional questions concerning the Companies
to:
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Primary Mailing Address
(Post Office Box) |
Casualty Reciprocal Exchange
Equity
Mutual Insurance Company
P.O. Box 219658
Kansas City, MO 64121-9559
Attn: Special Deputy
Liquidator |
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Overnight
Mailings Address
(Street Address)
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Casualty
Reciprocal Exchange
Equity Mutual Insurance Company
11880 College Blvd, Suite 500
Overland Park, KS 66210
Attn: Special Deputy
Liquidator
Phone:
888.361.8300
Fax: 913.339.5006
Website: www.cre-emic.com
E-mail
contacts: info@cre-emic.com
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What
happens when an insurance company becomes insolvent and is liquidated?
The
Companies were placed into Liquidation because they were insolvent
(liabilities in excess of assets). Since
the Companies were domiciled in Missouri, the Circuit Court of Cole County
(county where the Missouri capitol is located) appointed the Director of
the Missouri Department of Insurance as Liquidator. The Liquidator is
charged with gathering the Companies’ assets and determining their
liabilities. Liabilities include operational expenses and claims against
insurance policies issued by the Companies. The liquidation proceeding is
conducted under court supervision and according to procedures mandated by
Sections 375.1150 to 375.1246 Revised Statutes of Missouri (RSMo 2000) Click
here for a link to the website.
The Liquidator has appointed a Special Deputy Liquidator (SDL) to manage
the day-to-day operations of the Companies. The liquidation process often
takes several years to complete
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I have heard Meadowbrook
Insurance Group, MIG, Star, etc. is insolvent, in liquidation, in
rehabilitation, etc. Is this true?
No. Meadowbrook Insurance Group is a
Michigan-based publicly traded company that provides insurance services to
businesses, insurance companies and governmental entities on a
fee-for-service basis, as well as provides insurance to a broad range of
customers nationwide. Based
on Meadowbrook’s experience and expertise, the Missouri Department of
Insurance, with the supervisory court’s approval, retained Meadowbrook
to assist the Special Deputy Liquidator with the orderly run-off of CRE
and EMIC (formerly known as “Dodson Group”).
Meadowbrook provides certain claims, management, reporting and
other administrative services to the Special Deputy Liquidator.
Meadowbrook does not own CRE and EMIC nor has Meadowbrook ever had
any other business relationship with CRE and EMIC.
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Claims Questions |
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What
will happen to my claim?
Each state has Insurance
Guaranty Associations or Guaranty Funds ("Guaranty Funds") that
may provide coverage for certain claims against insurance policies of
liquidated insurance companies.
All of the Companies’
open claims have been (or will be) shipped to the appropriate state
Guaranty Fund, which is usually the state in which the policyholder was
located at the time of the accident or loss.
If you are a claimant, you will receive a Notice of Liquidation
with information about which state Guaranty Fund received your claim, as
well as a Proof of Claim (described below).
Please check the Companies’
website [cre-emic.com]
and the ‘Directory of Guaranty Funds’ section of the NCIGF website [ncigf.org]
for contact information on the Guaranty Fund in your state.
Questions about which state Guaranty Fund received your claim may
be directed to cre-emic.com.
You may reside in a state
that does not cover your claim. If so, your claim will be handled by the
Liquidator through the Proof of Claim process (described below).
Questions about whether or not your claim is covered by a state
Guaranty Fund should be directed to the Guaranty Fund in the state in
which you reside.
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Since CRE/EMIC have been
ordered into liquidation, will my claims be paid? Will they be paid in
full?
All valid claims incurred
prior to the expiration date of your insurance policy will be paid subject
to your policy conditions, your policy limits, the statutory limitations
of the Guaranty Funds referenced earlier and subject to available estate
assets.
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I'm from a Guaranty Fund
and I need a closed claim file sent to me. What do I need to do?
All questions from Guaranty Funds
regarding access to closed claim files should be directed to the CRE/EMIC
Special Deputy Liquidator by fax at 913.339.5006 or phone at
888.361.8300.
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Proof of Claim Questions |
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What do I do if I have a
claim against the Companies that was not filed before the date of
Liquidation (8-18-04)? |
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If you have a policy claim
that was filed with the Companies prior to the date of Liquidation
(8-18-04) or any other claim against the Companies, you must submit a
Proof of Claim form. See additional description of Proof of Claim form below. All
Proofs of Claim must be filed no later than 4:30 p.m. Central Daylight
Time June 30, 2005 to:
Casualty
Reciprocal Exchange
Equity
Mutual Insurance Company
P.O.
Box 219658
Kansas City, MO 64121-9559
Attn: Special Deputy Liquidator
The SDL will document
receipt of your claim and if necessary forward your claim to the
appropriate Guaranty Fund. If that Guaranty Fund rejects your claim
because of statutory limitations or if the Companies were not authorized
to transact business in the state, you may then contact the SDL for
further information. If your Guaranty Fund does not cover your claim, it
will be reviewed by the SDL. If approved in whole or in part it will be
paid from the assets of the Companies. If the Companies do not have enough
assets to pay claims in full, they will be paid according to Sections
375.1150 to 375.1246 (RSMo 2000) [Click
here]You may locate additional Proofs of Claim forms at www.cre-emic.com.
Failure to file your
claim promptly will likely result in a denial of your claim.
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How
long will it take for my claims to be paid by the Guaranty Fund?
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When a company is placed into liquidation, the
Guaranty Fund is typically activated to pay claims as soon as the court
orders the liquidation. Workers’ Compensation Indemnity Payments (payments
for lost wages) were paid in advance through September 17, 2004 in order to
prevent gaps in payments to claimants.
No other type of claim was paid in advance, as the Court did not
authorize it.
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I have questions about what
is and what is not covered by the Guaranty Fund. Who can answer these
questions for me?
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You should address your questions about
Guaranty Fund responsibilities to the Guaranty Fund in the state where you
reside. Please visit www.cre-emic.com
for Guaranty Fund contact information, or call the SDL at 888.361.8300.
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I
believe I have a claim against a policyholder of the Companies but I am not
a policyholder. How do I make a claim?
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Third-party liability claims against policyholders of the
Companies are made in the same manner as policyholder claims. To file a
claim for monies you believe the Companies, or their policyholders, owe you,
you must file a Proof of Claim no later than 4:30 p.m. Central Daylight Time
June 30, 2005. Your claim must be received by the SDL prior to 4:30 p.m.
Central Daylight Time June 30, 2005.
You
should file a proof of claim even if you are unsure whether or not you have
a claim. By law, the SDL may deny claims filed after 4:30 p.m. Central
Daylight Time on June 30th, 2005 ("The Bar Date"). If you fail to
file a proof of claim by this date, your claim may be considered late.
If your claim is or may be covered by a Guaranty Fund, the
SDL will forward your information to the appropriate Guaranty Fund. If the
Guaranty Fund rejects your claim because of statutory limitations or if the
Companies were not authorized to transact business in the state, you may
then contact the SDL for further information.
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If my claim is directly against the
Company in Liquidation, and I am neither a policyholder nor a third-party
liability claimant, how do I make a claim?
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The SDL handles claims filed against the Companies by
general creditors, trade creditors, governmental agencies, reinsurers,
agents, employees and any other persons who may have some claim against or
other interest in the assets of the Companies. To file a claim you must
submit a Proof of Claim no later than June 30, 2005. Your claim must be
received by the SDL prior to 4:30 Central Daylight Time June 30, 2005.
You
should file a proof of claim even if you are unsure whether or not you have
a claim. By law, the SDL may deny claims filed after 4:30 p.m. Central
Daylight Time on June 30th, 2005 ("The Bar Date"). If you fail to
file a proof of claim by this date, your claim may be considered late.
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What
is a Proof of Claim?
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Missouri Insurance Statutes requires all persons interested
in the assets of the Companies to file a form prescribed by the SDL that
provides basic information about the claim and any supporting data or
documents that may be requested. Proofs of Claim will be mailed to all
parties known to the Companies who may have a claim against the Companies. A
Proof of Claims form that specifies the other information you must file to
have your claim considered can be located by clicking here. The completed
form together with all the supporting data and documents is referred to as a
"Proof of Claim".
If
your claim is or may be covered by a Guaranty Fund, the SDL will forward
your information to the appropriate Guaranty Fund. If the Guaranty Fund
rejects your claim because of statutory limitations or if the Companies were
not authorized to transact business in the state, you may then contact the
SDL for further information.
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What
happens after I file the Proof of Claim?
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The SDL is in the process of collecting assets and
calculating the liabilities of the insurer. This process includes the review
of the Proofs of Claim. Those claims that are determined to be covered by
the appropriate Guaranty Fund will be forwarded to them for processing.
Those that are not covered by a Guaranty Fund will be reviewed by the SDL.
If more information is needed with respect to your claim, it will be
requested from you. By filing your claim you agree that you will provide
such information necessary to process your claim. The records of the
Companies may be incomplete or inaccurate and you may need to provide this
information. Be advised that the SDL is empowered to compel testimony and
documents via issuance of a subpoena.
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Do I have to file a Proof of Claim if
I reported a loss event to the Company in Liquidation before it was ordered
into liquidation?
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Yes. You must file a proof of claim
even if you reported a loss prior to the date of liquidation. Additionally, because the records of
financially troubled insurers are not always in perfect order, you may wish
to file a proof of claim to ensure that the SDL is aware of your claim
against the Companies.
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I am a vendor (defense attorney,
medical provider, etc.) and I have a bill for services provided to the
Companies that has not been paid. What
do I do to get my bill paid?
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All invoices for services provided must be submitted to the
SDL through the proof of claim process (described above). The SDL will forward your invoice on the appropriate Guaranty Fund,
if necessary. Your invoice may or may not be paid by the Guaranty Fund that
received the related claim file. If
not paid by the Guaranty Fund, the SDL will review your invoice for payment
directly from the Companies’ assets, depending upon the availability of
the Companies’ assets.
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