Financial Statements and Independent Auditors' Report 2008
Receivership Orders
Statement of Changes in Cash and Invested Assets: 1st Quarter 2010
Upcoming Court Dates
Contact OSD Staff

On November 19, 2002, an Agreed Order of Liquidation with a Finding of Insolvency  was entered against Oak Casualty Insurance Company. This action was taken following the Department of Insurance’s determination that the company was insolvent by more than $2.5 million.

Oak Casualty began business in June 1988 as a Florida domiciled insurance company. Prior to 1997, the company was 60% owned by Industrial Casualty Insurance Company, an Illinois Life and Accident and Health Mutual Legal Reserve Company. In 1997, Industrial Casualty was demutualized and converted to a property and casualty company. Simultaneously, Oak Casualty was re-domesticated to Illinois and merged with Industrial Casualty, with Oak Casualty continuing as the surviving entity. Oak Casualty is a wholly owned subsidiary of Preferred Casualty Holdings, Inc., a privately held Illinois holding company.

Licensed in the states of Illinois, Indiana, Florida and West Virginia, the company wrote primarily private passenger non-standard automobile liability, and physical damage policies, as well as individual accident and health hospital/medical disability coverage. The company was in runoff and wrote no new business after August 2002.

The claim filing deadline was November 19, 2003, with a contingent claim date of November 19, 2004. Early Access distributions totaling $6,156,345 have been made to various Guaranty Funds for administrative expenses and claim payments.  On October 19, 2009 a 100% level (c) - (g) distribution was made totaling $2,170,675.  There are surplus funds remaining for a second distribution.  The Supervisory Court has set a new bar date of June 30, 2010 for the next round of proofing.

On June 25, 2009, Based upon best estimates and barring any unforeseen circumstances, the Special Deputy Receiver expects to make a 100% dividend distribution on claims allowed at the employee, policyholder and general creditor priority levels (c), (d) and (g) of the Illinois statutory distribution scheme. It is anticipated that the distribution will be made in the third or fourth quarter of 2009. This good faith estimate is based upon information available and the circumstances known at the time that it was made. Before basing any decisions on this estimate, be aware that the underlying facts and circumstances are subject to change.

October 7, 2009, the Circuit Court of Cook County, Illinois entered an order approving a one hundred percent (100%) dividend on all outstanding claims recommended for allowance and approved by prior orders of the court for distribution at statutory priority levels 215 ILCS 5/205(1)(c) thru 215 ILCS 5/205(1)(g).  This will result in a distribution of Oak Casualty estate assets in the amount of $2,170,675.00. See Receivership Order.

On January 15, 2010, the Supervising Court entered an Order establishing a second claim-filing deadline of June 30, 2010 for purposes of participating in a distribution of surplus assets existing subsequent to payment having been made, in full, on allowed claims filed as of the original claim-filing deadline of November 19, 2003.  Requests for proof of claim forms may be made either by: (1) writing to Oak Casualty Insurance Company, In Liquidation c/o the Office of the Special Deputy Receiver, located at 222 Merchandise Mart Plaza, Suite 1450, Chicago, Illinois 60654; or (2) clicking on the following link http://www.osdchi.com/select_proof_of_claim.htm.  For administrative purposes, a request for a Proof of Claim form should include the following information: your name and address, the claimant’s name (if different), the Oak Casualty Company policy number, the date of the loss or accident, and, if available to you, the Oak Casualty Company claim number. See Receivership Order.