Legion Indemnity Company
Welcome to the webpage for Legion Indemnity Company.
On April 9, 2003, Legion Indemnity Company was ordered
into liquidation. Jennifer Hammer, Director of
Insurance of the State of Illinois, is the statutory and
court-affirmed Liquidator. By Illinois law, the Director
may appoint a Special Deputy Receiver to administer the
receivership. The Office of the Special Deputy Receiver
has been appointed to assist in the day-to-day administration
of the liquidation proceedings under the direction of the Director.
Here is additional information on Legion Indemnity Company:
|Liquidation Date:||April 9, 2003|
|Claims Filing Deadline:||October 11, 2004|
|Contingent Claims Filing Deadline:||April 10, 2006|
|Second Claim Filing Deadline:||August 31, 2015|
|Docket Number:||02 CH 06695|
|Click here to view the Legion Indemnity Company docket and upcoming court dates maintained by the Clerk of the Supervising Court.|
|Related Documents and Links:|
On September 28, 2017, the Supervising Court entered an order approving a 22% second dividend on
late-filed claims recommended for allowance and approved by order of the Court for distribution
at statutory priority level 215 ILCS 5/205(1)(d). Pursuant to the Court’s order, the Liquidator
has been authorized to make a distribution of Legion Indemnity Company’s estate assets, in the
amount of $5,394,006, in order to effectuate the second dividend on late-filed priority level (d) claims.
|Historical Data:||Check the NAIC Global Receivership Information Database ("GRID") for additional data on insurance companies in receivership.|
On April 3, 2002, an Order of Conservation was entered against Legion Indemnity Company. On April 9, 2003, upon the Director’s Verified Complaint for Liquidation, the Circuit Court of Cook County entered an Order of Liquidation with a Finding of Insolvency against Legion Indemnity Company.
The Illinois Property and Casualty Guaranty Fund, as well as the New Jersey Surplus Lines Guaranty Association were triggered for covered claims of residents of their respective states only. In addition, the Illinois Life and Health Guaranty Association was triggered for covered accident and health claims of Illinois residents, as well as certain other states.
The company is licensed only in the state of Illinois; however, it operated on a surplus lines or non-admitted basis in the District of Columbia, U.S. Virgin Islands and 49 other jurisdictions. On December 31, 2001, the company reported direct written premium of $89,307,000, and assumed reinsurance premium of $11,500,000.
Legion Indemnity was originally incorporated in January 1987 as the Wacker-Randolph Insurance Company. The name was changed to Dearborn Insurance Company in March 1987 and changed to its current name in May 1996. Legion Indemnity is a wholly owned subsidiary of Legion Financial Corporation, which in turn owned by Mutual Group Ltd. of Delaware. The ultimate holding company for all of the insurance operations is Mutual Risk Management, Ltd., a Bermudan corporation.
The claim filing deadline was October 11, 2004. The deadline for liquidation of timely-filed contingent claims was April 10, 2006. Early access distributions reimbursing 100% of the amounts paid by various state insurance guaranty associations for administrative expenses and claim payments have been made.
On December 28, 2011, the Supervising Court approved a 90% dividend distribution on timely-filed and allowed claims at the policyholder priority level (d), of the Illinois statutory distribution scheme, in the amount of $37,473,049.36.
On May 23, 2012, the supervising Court approved a 10% dividend distribution on timely-filed and allowed claims at the policyholder level (d) of the Illinois statutory distribution scheme, in the amount of $5,031,724.47. Based on the 90% distribution made in 2011 on timely-filed claims at level (d), a 100% distribution has now been completed.
On February 13, 2014, the supervising Court approved a 100% dividend distribution on timely-filed and allowed claims at the policyholder level (e), of the Illinois statutory distribution scheme, in the amount of $12,997,272.01.
On December 5, 2014, the Supervising Court entered an order approving a 100% fourth dividend on all timely filed claims recommended for allowance and approved by order of the Court for distribution at statutory priority level 215 ILCS 5/205(1)(g). Pursuant to the Court’s order, the Liquidator has been authorized to make a distribution of Legion Indemnity Company’s estate assets, in the amount of $15,201,998, in order to effectuate the fourth dividend.
On June 8, 2016, the Supervising Court approved a 16.0% fifth dividend and distribution of estate assets on timely-filed, allowed and Court approved claims at Illinois statutory priority level 215 ILCS 5/205(1)(d).
Based upon best estimates and barring any unforeseen circumstances, the Liquidator expects that a second dividend in the amount of 22% will be distributed by the end of October, 2017, on all late-filed claims that have previously been presented to the Supervising Court and allowed at the policyholder priority level “d” of the Illinois statutory distribution scheme, bringing the total late-filed priority level “d” distribution to 38%. This Good Faith Estimate is based upon information available and the circumstances known at the time it was made, utilizing the current cash available for late-filed priority level “d” creditors, and does not contemplate potential reinsurance recoveries on paid loss and loss adjustment expense, the timing and amount of which is currently unknown. Before relying on this estimate in making any decisions, be aware that the underlying facts and circumstances upon which it is based are subject to change.