Financial Statements and Independent Auditors' Report
Legion Second Claim Filing Deadline
Receivership Pleadings and Orders
Statement of Affairs
Statement of Changes in Cash and Invested Assets
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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 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.

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 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% fifth dividend and distribution of estate assets on timely-filed claims (second claim filing deadline), allowed and Court approved at Illinois statutory priority level 215 ILCS 5/205 (1)(d).

On September 28, 2017, the Supervising Court entered an order approving a 22% sixth dividend on timely-filed claims (second claim filing deadline) 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 made a distribution of Legion Indemnity Company’s estate assets, in the amount of $5,394,006, in order to effectuate the sixth dividend on timely-filed priority level (d) claims (second claim filing deadline) bringing the total timely-filed (second claim filing deadline) priority level (d) distribution to 38%.

On April 11, 2018 the Supervising Court approved the Liquidator’s twenty percent (20%) seventh dividend on all timely filed (second deadline) claims. These claims are allowed for distribution at statutory priority level 215 ILCS 5/205(1)(d), bringing the total late-filed priority level “d” distribution to 58%.

On September 25, 2019, the Supervising Court approved a seventeen percent (17%) eighth dividend on Legion Indemnity’s claims allowed for distribution at statutory priority level 215 ILCS 5/205(1)(d), bring the total late-filed priority level “d” distribution to 75%.