Receivership Pleadings and Orders
Financial Statements and Independent Auditors' Report
Statement of Affairs
Invitation For Bids: Purchase of ASIC and ACIC’s clean corporate charter; and 64 Certificates of Insurance or State Licenses.
Pleadings Concerning Substantive Consolidation of Estates
ASIC and ACIC Liquidation FAQ
ASIC and ACIC Notices
GIC FAQ
GIC Notices
Invitation For Bids: Purchase of Gateway’s corporate charter, 47 state insurance licenses, and 9 state statutory deposits
Statement of Changes in Cash and Invested Assets (ASIC, ACIC and GIC)
Contact OSD Staff

On July 19, 2022, a Complaint for Declaratory Judgment and Other Relief was filed with the United States District Court for the Northern District of Illinois (Case No.: 1:22-cv-03709) on behalf of the Estate of Gateway Insurance Company (and another Estate) seeking a determination of insurance coverage for a fraudulent spear phishing scheme that resulted in unrecovered wire transfers of approximately $2,150,000 from the accounts of Gateway (and $1,830,000 from the accounts of the other Estate). The two defendants have filed separate motions to dismiss, which are fully briefed, and the parties are awaiting the court’s ruling.

American Service Insurance Company (“ASIC”), American Country Insurance Company (“ACIC”) and Gateway Insurance Company (“GIC”) are affiliated companies (collectively, the “ASI Pool Companies”), whose ultimate controlling party (prior to being placed into rehabilitation) was Atlas Financial Holdings, Inc.

On July 8, 2019, the Circuit Court of Cook County, Illinois (the “Supervising Court”) entered an Agreed Order of Rehabilitation against both ASIC and ACIC in accordance with the provisions of Article XIII of the Illinois Insurance Code, 215 ILCS5/187 et. seq. On October 16, 2019, the Supervising Court entered an Agreed Order of Rehabilitation against GIC in accordance with the provisions of Article XIII of the Illinois Insurance Code, 215 ILCS5/187 et. seq.

On June 10, 2020, the Supervising Court entered an Agreed Order of Liquidation against GIC in accordance with the provisions of Article XIII of the Illinois Insurance Code, 215 ILCS5/187 et. seq.

Also on June 10, 2020, the Supervising Court entered a Memorandum Opinion and Order Approving Stock Purchase Agreement, Sale Transaction and Channeling Injunction as to Certain Assets whereby the Liquidator was authorized to complete a transaction between GIC and Buckle Corp., Inc. (“Buckle”). On June 17, 2020, the Liquidator and Buckle Corp., Inc. (“Buckle”) closed the stock purchase agreement (“SPA”) and related transactions previously approved by the Supervising Court, completing Buckle’s purchase of 100% of the stock of GIC, and the channeling to Buckle of certain assets consisting of 47 state licenses for the transaction of the business of insurance and 9 state statutory deposits. All other assets, including $4,200,000 in consideration received from Buckle, were not channeled to Buckle and, together with all liabilities of the estate, remained subject to the liquidation proceedings.

On August 11, 2020, the Supervising Court entered an Agreed Order of Liquidation against both ASIC and ACIC in accordance with the provisions of Article XIII of the Illinois Insurance Code, 215 ILCS5/187 et. seq.

On October 30, 2020, the Supervising Court entered an order granting the Liquidator’s motion requesting that the liquidation estates of ACIC, ASIC, and GIC be substantively consolidated . Pursuant to the order granting substantive consolidation, the assets and liabilities of the estates of ACIC, ASIC, and GIC were combined for purposes of any distributions that may be made on claims allowed in the liquidation proceedings, while the companies continue to exist as separate legal entities. The purpose of the substantive consolidation is to achieve an equitable allocation of the assets of the ASI Pool Companies, consistent with the companies’ pre-liquidation operations.

On November 4, 2020, the Supervising Court entered a Memorandum Opinion and Order Approving Stock Purchase Agreement, Sale Transaction and Channeling Injunction as to Certain Assets whereby the Liquidator was authorized to complete a transaction between both ASIC and ACIC and Buckle.

On May 20, 2021, the Supervising Court entered an order Modifying the SPA between both ASIC and ACIC and Buckle.

On May 25, 2021, the Liquidator and Buckle closed the SPA and related transactions previously approved by the Supervising Court on November 4, 2020, as modified, completing Buckle’s purchase of 100% of the stock of ASIC and ACIC, and the channeling to Buckle of certain assets consisting of 64 state licenses for the transaction of the business of insurance. All other assets, including $3,000,000 in consideration received from Buckle, were not channeled to Buckle and, together with all liabilities of the two estates, remained subject to the liquidation proceedings.