Public Service Insurance Company ("PSIC") and Public Service Mutual Holding Company ("PSMHC")
Welcome to the webpage for PSIC and PSMHC . On March 16, 2017, both PSIC and PSMHC
were ordered into rehabilitation. Jennifer Hammer, Director of the Illinois Department
of Insurance, is the statutory and court-affirmed Rehabilitator. 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 rehabilitation proceedings under the direction
of the Director. Here is additional information on PSIC and PSMHC:|
|Rehabilitation Date:||March 16, 2017|
|Docket Number:||2017 CH 3790|
|Click here to view the Public Service docket and upcoming court dates maintained by the Clerk of the Supervising Court.|
|Related Documents and Links:|
FAQ and Documents pertaining to the Rehabilitator’s Proposed Plan for Public Service Insurance Company and Public Service Mutual Holding Company of Rehabilitation and Assumption, Assignment and Novation Agreement
On January 24, 2018 the Supervising Court entered an order approving the Rehabilitator’s request that her Petition For Approval Of The Rehabilitator’s Plan Of Rehabilitation For Public Service Insurance Company And Public Service Mutual Holding Company be withdrawn and stricken. The Rehabilitator’s withdrawal of the Petition was based upon the failure of the Assignment, Assumption and Novation Agreement transaction previously approved by Supervising Court on November 29, 2017 to close by the contractually required deadline of January 16, 2018.
On November 29, 2017, the Supervising Court entered an order approving the Assignment, Assumption and Novation Agreement (the “Transaction”) entered into, subject to the court’s approval, between the Rehabilitator and Sparta Insurance Company (“Sparta”). Sparta has until January 16, 2018 to close the Transaction. The Court also entered an order continuing the hearing on the Rehabilitator’s proposed Plan of Rehabilitation to January 24, 2018.
October 2, 2017: Notice regarding Petitions for Public Service Insurance Company and Public Service Mutual Holding Company for Approval of Plan of Rehabilitation and for Approval of Assignment, Assumption and Novation Agreement.
On October 2, 2017 the Rehabilitator filed Petitions for Approval of Plan of Rehabilitation and for Approval of Assignment, Assumption and Novation Agreement along with a Supporting Memorandum for each Petition. Copies of these filings can be found here. A copy of the Supervising Court's Scheduling Order setting forth the procedures for notice, comment and hearing on these Petitions can be found at the same location. Subsequent filing related to these Petitions will also be posted at this location.
On September 14, 2017 the Rehabilitator filed a Motion For Approval of Procedures for Notice, Comment and Hearing on the Rehabilitator’s Petition For Approval of: (1) Plan of Rehabilitation for Public Service Insurance Company and Public Service Mutual Holding Company; and (2) Assumption, Assignment and Novation Agreement. You can find the motion here.
On March 16, 2017, an Agreed Order of Rehabilitation was entered against both PSIC and PSMHC by the Circuit Court of Cook County, Illinois (“Supervising Court”). Jennifer Hammer, Director of the Illinois Department of Insurance, has been affirmed as the companies’ statutory rehabilitator (“Rehabilitator”).
PSIC is an Illinois domestic stock property & casualty insurance company located in New York City, New York. PSIC was previously organized as a mutual insurance company, which upon its conversion to a stock company became a subsidiary of PSMHC. As of December 31, 2016 PSIC had statutory surplus in the amount of $28,264,847. Pursuant to the Agreed Order of Rehabilitation coverage under policies in force on March 16, 2017 will remain in place until their contractual expiration date. The Agreed Order authorizes the Rehabilitator to continue to pay claims as they come due and owing in the ordinary course of business including claims by or against PSIC’s policyholders and assumed reinsurance claims.
The Rehabilitator is preparing a plan of rehabilitation for the companies. When the plan of rehabilitation is completed, the Rehabilitator will present it to the Supervising Court for its approval, subject to a process for notice, comment, and hearing by stakeholders.
(Update Posted 01/24/2018)