Receivership Orders

On October 14, 2004, an Agreed Order of Liquidation With a Finding of Insolvency, was entered against ATLA Mutual by in the Circuit Court of Cook County, Illinois. ATLA Mutual’s board of directors consented to the order, which was entered based on the Director’s complaint that ATLA Mutual was insolvent and could not pay its claims and other obligations as they become due and owing in the ordinary course of business.

ATLA Mutual is a mutual insurance company qualified under the Federal Liability Risk Retention Act of 1986. ATLA Mutual provided professional liability insurance, on a claims made basis to attorneys who are members of the Association of Trial Lawyers of America (“Association”), or to law firms in which one or more Association members are partners, associates, stockholders, or employees and who meet ATLA Mutual’s underwriting standards.

In May of 1998, ATLA Mutual began offering claims made Employment Practices Liability Insurance. The coverage was offered to existing members as a complement to and enhancement of their existing liability insurance and to other members of the Association who wished to purchase this protection.

In 2001 ATLA Mutual had formed a wholly owned subsidiary corporation “ATLA Mutual Insurance Agency” and the agency in turned formed a wholly owned subsidiary “Association of Trial Lawyers Assurance Risk Purchasing Group.” ATLA Mutual operates under a management service agreement with Self Insurance & Captive Managers, Inc.

At the close of business on December 31, 2000 ATLA Mutual had voluntarily decided to stop writing premium and enter into run-off of existing business. In 2002 ATLA Mutual recorded one extended reporting period. The “ATLA Mutual Insurance Agency” produced no commission income in 2003.

The claim filing deadline was October 14, 2005, with a contingent claim date of October 16, 2006.

An order approving a final distribution, closing the estate and terminating the liquidation proceedings was entered by the Supervising Court on December 10, 2008.