Alliance General Insurance Company
Estate Closed
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Welcome to the webpage for
Alliance General Insurance Company. On January 7, 2000, Alliance
General Insurance Company was ordered into liquidation, and the Director
of Insurance was affirmed as Receiver. By Illinois law, the
Director may appoint a Special Deputy Receiver to administer the
receivership. By power of attorney, Patrick D. Hughes is the
Special Deputy Receiver to Director of Insurance Andrew Boron, and the Office
of the Special Deputy Receiver handles the day-to-day administration of
the liquidation proceedings under the direction of the Special Deputy,
subject to the ultimate authority of the Director and to court
supervision. Here is additional information on Alliance General
Insurance Company: |
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| Liquidation Date: | January 7, 2000 |
| Claim Filing Deadline: | January 8, 2001 |
| Contingent Claim Deadline | January 8, 2002 |
| Estate Closed: | March 10, 2010 |
| Docket Number: | 00 CH 00293 |
| Related Documents: | |
Financial Statements and Independent Auditors' Report |
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| Historical Data: | |
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A wholly owned subsidiary of Alliance Insurance Group, Inc., the company was incorporated in 1984 and began business on January 1, 1985. Alliance operated on a licensed basis in Illinois and on an excess and surplus line basis in 39 other states and the Virgin Islands. Alliance wrote commercial liability and property liability exposure. Prior to being placed into liquidation, Alliance General Insurance Company’s last financial statement reflected approximately $13.7 million in direct as well as assumed reinsurance premiums for the period ending December 31, 1998. No new direct business was written after the third quarter of 1998. An Agreed Order of Liquidation with a Finding of Insolvency was entered against Alliance General Insurance Company on January 7, 2000. The claim filing deadline was January 8, 2001, with a contingent claim date of January 8, 2002. The Liquidator filed a lawsuit against certain former officers and directors of Alliance and its outside auditors, alleging, among other things, negligence and breach of duty. A final settlement was reached with one of the defendants for $2,750,000. Settlement was also reached with the officers, directors and owners for $5,000,000. The suit against the outside auditors was settled for $10,000,000. The Liquidator’s suit against one remaining defendant was settled in 2007. Early access distributions totaling $1,453,155 have been made to the Illinois Insurance Guaranty Fund for administrative expenses and claim benefits. On September 22, 2008, an order was entered approving the Liquidator’s plan to distribute 100% dividend to all claimants whose timely-filed claims are allowed at priority level “d” of the statutory priority schedule. $17,876,362 was distributed. There was subsequently a 100% level (e) distribution in the amount of $813,138. January 8, 2010 - Based upon our best estimates and barring any unforeseen circumstances, the Special Deputy Receiver anticipates closing this estate in the first quarter of 2010. A final, partial distribution within the range of 66-68% is anticipated on claims allowed at general creditor level (g) of the Illinois statutory distribution scheme. These good faith estimates are based upon information available and the circumstances known at the time they were made. Before relying upon these estimates in making any decision, be aware that the underlying facts and circumstances upon which they are based are subject to change. On March 10, 2010 the Supervisory Court entered an order approving a prorated distribution of the estate's assets, at a rate of 66.9905%, on all claims allowed at level (g) of the statutory distribution schedule. The court's order also terminated the liquidation proceedings and closed the estate. Last updated October 2010 |
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