Office of the Special Deputy Receiver

Representing Dana Popish Severinghaus, Director of the Illinois Department of Insurance

Jacob Stuckey, Special Deputy Receiver & Chief Executive Officer

United Capitol Insurance Company

Estate Closed

   
Liquidation Date: November 14, 2001
Claims Filing Deadline: November 14, 2002
Contingent Claims Filing Deadline: November 14, 2003
Estate Closed: August 23, 2016
   
Docket Number: 01 CH 14957
   
Related Documents and Links:  
Financial Statements and Independent Auditors' Report
Receivership Petitions and Orders
Statement of Affairs
Statement of Changes in Cash and Invested Assets
Contact OSD Staff

Latest News:  
On August 23, 2016, the Supervising Court entered an order approving a $4,530,114 final distribution of United Capitol’s estate assets to statutory priority level (g) general creditor claimants [215 ILCS 5/205(1)(g)]; closing the United Capitol receivership estate; and terminating the United Capitol liquidation proceedings without prejudice pursuant to 215 ILCS 5/211.1(a).
(Posted 9/1/2016)
   
Historical Data: Check the NAIC Global Receivership Information Database ("GRID") for  additional data on insurance companies in receivership.

On September 12, 2001, United Capitol Insurance Company, an Illinois domestic property and casualty company, was placed under an Order of Conservation. An Order of Liquidation with a Finding of Insolvency was entered on November 14, 2001.

United Capitol is a wholly owned subsidiary of United Capitol Holding Company, Inc., a Delaware insurance holding company, which is in turn wholly owned by Frontier Insurance Company of Rock Hill, New York. Frontier was placed into rehabilitation by the New York Department of Insurance on August 27, 2001. Both companies are members of the Frontier Insurance Group.

United Capitol was originally incorporated in February 1981 as the Great Southwest Surplus Lines Insurance Company. The current name was adopted in June 1986, and the company was acquired by the Frontier Insurance Group through its subsidiary Frontier Insurance Company in May 1996.

The company is licensed in three states (AZ, IL and WI), and operated on a surplus line or a non-admitted basis in D.C., Puerto Rico, the U.S. Virgin Islands and all other states.

The claim filing deadline was November 14, 2002, with a contingent claim date of November 14, 2003. Early access distributions totaling $4,149,764 have been made to the various guaranty funds for administrative expenses and claim payments.

A complaint against the former directors and officers of the company alleging breach of fiduciary duty and reckless mismanagement was settled for $6,250,000.

On December 2, 2010, the Supervising Court approved the Liquidator's petition to distribute an interim dividend on all timely-filed claims that were previously recommended for allowance by the Liquidator and approved by the Supervising Court at the policyholder priority level (level "d") of the Illinois priority of distribution schedule.  The interim dividend was approved in the amount of 75% of the amount of each priority level "d" claim allowance, and totals $13,955,187 for all claims allowed to date.

On December 1, 2011, the Supervising Court approved a 25% dividend distribution on timely-filed and allowed claims at the policyholder priority level (d) of the Illinois statutory distribution scheme, in the amount of $5,573,179.95.  Based on the 75% distribution made in 2010 on timely-filed and allowed claims at level (d), a 100% distribution has now been completed.

On March 29, 2012, a 100% dividend distribution in the amount of $1,173,427 was made on all timely-filed claims allowed at the level (e) policyholder priority level.

Last updated September 2016

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