|By Becky Yerak, Chicago Tribune|
|McClatchy-Tribune Information Services|
"Liquidation was the next step in this process," Boron said in a statement. He said his staff "has worked diligently during this transition" to protect the interests of the companies' creditors and customers.
The court order will allow for the distribution of assets on claims arising in the liquidation proceedings of the three companies, he said.
Lumbermens is a mutual property and casualty insurer organized in 1912 and held licenses in 49 states and the
In 2002, after experiencing greater-than-expected losses, the companies and their investments were doing poorly due to global economic conditions. All three began a voluntary run-off in 2003 and have been operating under a run-off plan filed and approved by the insurance department in 2004.
After notices were sent to hundreds of thousands of interested parties, only one policyholder has filed a substantive objection, Boron said in court documents. The court rejected those objections, the department said.
Since the run-off began, the companies' combined liabilities have dropped from nearly
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