2020 Insolvencies
On August 11, 2020, the Circuit Court of Cook County, Illinois, approved the order of liquidation with a finding of insolvency for American Service Insurance Company and American Country Insurance Company.
2019 Assessments
The Board of Governors did not authorize any assessment for 2019 based on 2018 net-direct written premiums.
2019 Insolvencies
Northwestern National Insurance Company (NNIC) – was placed into liquidation by the Wisconsin Department of Insurance on May 2, 2019.
2018 Assessments / Refunds
The Board of Governors did not authorize any assessment for 2018 based on 2017 net-direct written premiums.
In September 2017 the Board of Governors authorized the following refunds:
$9,999,365 in Workers’ Compensation
$9,998,590 in Other 2
2017 Insolvencies
Guarantee Insurance Co. (GIC) – was placed into liquidation by the Florida Department of Financial Services on November 27, 2017.
Castlepoint National Insurance – was placed into liquidation by the California Department of Insurance on April 1, 2017.
Covered Claim Exclusions
Net Worth Limitations
Pursuant to the MPCGA Act, MPCGA may not handle claims of insureds whose net worth is greater than a certain amount. For companies liquidated prior to September 18, 2006 covered claims shall not include obligations to an insurer, insurance pool, underwriting association, or to a person who has a net worth greater than 1/10 of 1% of the aggregate premiums written by member insurers in this state in the preceding calendar year. As a result of passage of Public Act 362 of 2006, for insolvencies that occur on or after September 18, 2006, an insured will not be covered by MPCGA if its net worth exceeds $25,000,000 on the last day of the insured’s last full fiscal year prior to the insurer’s insolvency. MPCGA uses the aggregate net worth of the insured and all of its subsidiaries and affiliates as calculated on a consolidated basis. The $25,000,000 net worth limit will be adjusted on January 1 of each year to reflect cost of living changes, rounded to the nearest $10,000.
| 1/1/17 – 12/31/17 | $29,760,000 |
| 1/1/18 – 12/31/18 | $30,400,000 |
| 1/1/19 – 12/31/19 | $31,140,000 |
| 1/1/20 – 12/31/20 | $31,700,000 |
Maximum Covered Claims
Prior to its amendment on September 18, 2006, the MPCGA Act provided a formula defining the maximum amount that MPCGA may pay on a given claim, other than a worker’s compensation claim. For companies liquidated prior to September 18, 2006 covered claims shall not include that portion of a claim, other than a worker’s compensation claim, which is in excess of 1/20 of 1% of the aggregate premiums written by member insurers in this state in the preceding calendar year. As a result of passage of Public Act 362 of 2006, the maximum amount that MPCGA may pay on a claim, other than a worker’s compensation claim or a claim for personal protection insurance benefits is $5,000,000. The $5,000,000 cap will be adjusted on January 1 of each year to reflect cost of living changes, rounded to the nearest $10,000. The claim cap that is in effect at the time of payment of a claim will apply.
| 1/1/17 – 12/31/17 | $5,950,000 |
| 1/1/18 – 12/31/18 | $6,080,000 |
| 1/1/19 – 12/31/19 | $6,230,000 |
| 1/1/20 – 12/31/20 | $6,340,000 |
Maximum Unearned Premium Refunds
The maximum unearned premium refund is adjusted annually to reflect cost of living changes. As a result of passage of Public Act 362 of 2006, unearned premium refunds of less than $50 will not be made on or after September 18, 2006.
Maximum Unearned Premium Refund based on liquidation date:
| 7/1/16 – 6/30/17 | $1,488 | |
| 7/1/17 – 6/30/18 | $1,523 | |
| 7/1/18 – 6/30/19 | $1,559 | |
| 7/1/19 – 6/30/20 | $1,588 | |
| 7/1/20 – 6/30/21 | $1,612 |
Insolvency Activity as of December 31, 2019
Click on view below to see the total loss and expenses incurred by statutory line of business for each insolvency since 2001, along with the older open insolvencies noted as “All Other” through December 31, 2019.
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