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. Dana Popish Severinghaus, Acting 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|
|Claims Filing Deadline:||November 12, 2019|
|Contingent Claims Filing Deadline:||N/A|
|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:|
Financial Statements and Independent Auditors' Report
On July 15, 2019 the Supervising Court entered an Order Approving Deadlines and Procedures For the Filing of Claims against the assets of the Estate of PSIC. Those persons having claims against the assets of the Estate of PSIC (“Claimants”) have the right to present and file with the Rehabilitator a Proof of Claim Form on or before the Claim Filing Deadline of November 12, 2019 at 4:30 p.m. C.S.T. A copy of the Order can be found here and a proof of claim form can be found here. Please note that if you have a claim arising under and within the coverage of a policy of insurance issued by PSIC (or Paramount Insurance Company) that those liabilities have been channeled out of the Estate to the resumed Public Service Insurance Company. You may contact the resumed Public Service Insurance Company by telephone at (212)591-9300.
On December 3, 2018, the court supervising the rehabilitation of Public Service Insurance Company (“PSIC”) entered two orders: (i) Memorandum Opinion and Order Approving Stock Purchase Agreement And Channeling Of Certain Assets and Liabilities; and (ii) Order Approving Rehabilitator’s Amended Plan of Rehabilitation (the “Amended Plan”). Under the stock purchase agreement (“SPA”), immediately upon the January 9, 2019 closing of the SPA transaction 100% of the stock of PSIC was purchased by Premia Holdings, Inc. (“Premia”), a portion of PSIC’s business was resumed by the Premia owned PSIC, and certain assets and liabilities were “channeled” into the resumed PSIC from the rehabilitation Estate of PSIC (the “Estate of PSIC”). Among the liabilities channeled into the resumptive and re-capitalized PSIC were all of PSIC’s remaining policyholder priority obligations. The resumptive PSIC is no longer in rehabilitation. Also on January 9, 2019, the Amended Plan became effective for purposes of running off the liabilities of the rehabilitation estate of PSIC, consisting of those liabilities of PSIC that were not channeled into the resumptive PSIC. Non-channeled liabilities remaining subject to the rehabilitation proceedings and the Amended Plan include, by way of example, pension obligations, assumed reinsurance and other general creditor obligations, and surplus note holder obligations. Copies of the two orders referenced above can be found on the Office of the Special Deputy’s website at the following links:
On September 18, 2018 and September 19, 2018 the Rehabilitator filed Petitions for Approval of Amended Plan of Rehabilitation and for Approval of Stock Purchase 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 filings related to these Petitions will also be posted at this location.
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”).
(Update Posted 01/10/2019)