Receivership Orders

Originally incorporated as Merit Insurance Company in 1968 and owned by Merit Financial Corporation, this company's current title was adopted in conjunction with a Plan of Rehabilitation discussed below. Merit, licensed in seven states (AZ, IL, IN, LA, MN, MS, and NV), wrote commercial and private passenger auto, general liability (including liquor liability), and commercial multiple peril coverages.

The Plan of Rehabilitation contemplated running off existing business of Merit Casualty over a six year period. To this end, a new Merit Insurance Company was formed. The profits of this company were being used to pay the claims of Merit Casualty Company.

On December 14, 1996, the court approved the Rehabilitator's Amended Plan of Rehabilitation. The Amended Plan contemplated, among other things, the sale, by Merit Casualty, of all the issued and outstanding common shares of Merit Insurance Company to Pembridge Insurance Services Corporation.

Based upon a subsequent examination of the claim liabilities of the company, the Rehabilitator determined that a successful rehabilitation of Merit Casualty was no longer feasible and that conditions existed that would justify a court order for the liquidation of Merit Casualty. An Agreed Order of Liquidation With a Finding of Insolvency was entered on April 1, 1997.

The claim filing deadline was April 1, 1998, with a contingent claim date of April 1, 1999.  1,500 claims were filed with the Liquidator. Early access distributions of $2,496,247 have been made to various Guaranty Funds for administrative expenses.