Office of the Special Deputy Receiver

Representing Ann Gillespie, Acting Director of the Illinois Department of Insurance

Jacob Stuckey, Special Deputy Receiver & Chief Executive Officer

Triad Guaranty Insurance Corporation ("Triad") and Triad Guaranty Assurance Corporation ("TGAC")

Welcome to the webpage for Triad Guaranty Insurance Corporation and Triad Guaranty Assurance Corporation. On December 11, 2012, Triad Guaranty Insurance Corporation and Triad Guaranty Assurance Corporation were ordered into rehabilitation. Ann Gillespie, Acting Director of Insurance of the State of Illinois, 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 Triad Guaranty Insurance Corporation and Triad Guaranty Assurance Corporation:
   
Rehabilitation Date: December 11, 2012
Claims Filing Deadline: N/A
Contingent Claims Filing Deadline: N/A
   
Docket Number: 12 CH 43895
   
Related Documents and Links:  
FAQ Regarding Plan of Rehabilitation
Financial Statements and Independent Auditors' Report
Plan of Rehabilitation
Receivership Pleadings and Orders
Statement of Affairs
Statement of Changes in Cash and Invested Assets
Triad Notice of Hearing
Triad Notice of Hearing to Claimants
Contact OSD Staff

Latest News:

During the first ten years of rehabilitation, the Rehabilitator has distributed in excess of $1.1 billion of Estate assets to Triad’s policyholder priority level creditors. This includes $682.8 million on claims processed since the inception of Triad’s Plan of Rehabilitation (paid at the Plan’s 75% claim payment rate, with a corresponding recording and issuance of new DPOs in the amount of $302.1 million), $327.3 million on the pay down of pre-Plan DPOs, and $84.2 million on suspended claims and DPO payments due at rehabilitation on business originated by American Home Mortgage.

   
Historical Data: Check the NAIC Global Receivership Information Database ("GRID") for  additional data on insurance companies in receivership.

On December 11, 2012, the Circuit Court of Cook County, Illinois (the “Supervising Court”) entered an Order of Rehabilitation against both Triad Guaranty Insurance Company (“TGIC”) and Triad Guaranty Assurance Corporation in accordance with the provisions of Article XIII of the Illinois Insurance Code, 215 ILCS5/187 et. seq.

On July 22, 2013, the Rehabilitator filed a Petition for Approval of Plan of Rehabilitation for Triad Guaranty Insurance Corporation, and Memorandum in Support, with the Clerk of the Circuit Court of Cook County, Illinois. A copy of these documents are located on Triad’s Proposed Plan of Rehabilitation link.

On October 29, 2013, the Supervising Court entered an order approving the Rehabilitator’s Plan of Rehabilitation for Triad Guaranty Insurance Corporation (“TGIC”). Under the terms of the Plan of Rehabilitation, approved claims for loss, unearned premium and return of premium are paid at the rate of 75% of the amount determined to be due, together with a deferred payment obligation (“DPO”) recorded for the remaining 25% of the amount due. DPOs that were outstanding and recorded by TGIC prior to approval of the Plan of Rehabilitation on loss claims that were previously paid at the rate of 60% of the amount due, were redeemed at the rate of 37.5% of the deferred amount, in order to equalize those prior claim payments with the 75% claim payment rate called for under the Plan of Rehabilitation.

On the Rehabilitation Date, the risk in force (“RIF”), or the net amount of all mortgage loan balances for which Triad is potentially responsible, was approximately $6.1 billion. As of December 31, 2022, RIF has been reduced to $678.1 million.

On the Rehabilitation Date, the risk in default (“RID”) was approximately $1.0 billion. As of December 31, 2022, RID decreased to $57.8 million with an additional $1.8 billion of new RID reported subsequent to the Rehabilitation Date. Reduction in RID was realized by: claim payments on $893.8 million of RID, rescissions or denials on $130.0 million of RID, and cures on $1.7 billion of RID.

On the Rehabilitation Date, 3,022 appeals were pending in which Triad’s policyholders were requesting that Triad reverse its rescission of their certificates of coverage due to determinations of mortgage underwriting and program violations. In accordance with the applicable provisions of the Plan, the Rehabilitator undertook efforts to negotiate global settlements of these appeals resulting in either dismissal of the appeal (and rescission of the policy) or reinstatement of the policy and coverage. As of year-end 2022, only 55 of these rescission appeals remained pending.

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