Illinois Department of Insurance places 2 insurers into rehabilitation
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SPRINGFIELD, Ill.—The Illinois Department of Insurance has placed Lumbermens Mutual Casualty Co. and an affiliated insurer, American Manufacturers Mutual Insurance Co., into rehabilitation, the state announced Tuesday.
An Illinois circuit court granted the department's rehabilitation order this week for the two property/casualty insurers, both based in Lake Zurich, Ill. Illinois insurance Director Andrew Boron will lead the restructuring, which includes liquidating the insurers' assets, according to the court order.
The boards of directors for Lumbermens and American Manufacturers voted in favor of rehabilitation on June 26, the state insurance department said in a statement Tuesday. The department said Illinois policyholders will continue to receive claim payments during the rehabilitation period.
Illinois insurance regulators have overseen operations for Lumbermens and American Manufacturers since 2004 after the insurers entered into a voluntary runoff plan, court records show. The restructuring began after Lumbermens lost its A- rating from A.M. Best Co. Inc.
Lumbermens manages workers compensation, specialty liability, and commercial auto and property policies, according to the company's website. The insurer stopped issuing and renewing policies in 2003.
