|
Utah Insurance Receivers Office
|
|
This document is in PDF format. If you do not have software that reads
this document, you
IN THE THIRD JUDICIAL DISTRICT COURT IN AND FOR SALT LAKE COUNTY, STATE OF UTAH, SALT LAKE DEPARTMENT
The Court appointed Liquidator of Wasatch Crest
Insurance Company in Liquidation ("WCIC"),
Utah Insurance
Commissioner, Kent Michie, (" Liquidator"),
successor in office to Merwin U. Stewart, by
and through his Special
Deputy Liquidator, Len W. Stillman, herein files
this Report On Status Of Liquidation
Estate For Period Ending
December 31, 2008 pursuant to the Liquidation
Order issued July 31, 2003, and pursuant to Utah
Code Annotated, Section
31A-27-314. The estate of Wasatch Crest Mutual
Insurance Company (Civil No. 030915528) is
consolidated with the
estate of Wasatch Crest Insurance Company in
Liquidation (Civil No. 030915527).
The Liquidator sets forth herein a Report on the status of the liquidation estate and a Financial Report of assets and liabilities of the liquidation estate of WCIC including the current assessment of liabilities from all claims filed against the liquidation estate. The attached Exhibit "A" Financial Report, was prepared by Jackie Muro of Vida Consulting, Inc., Los Angeles, CA under the direction of the Court appointed Special Deputy Liquidator, Len Stillman. The Liquidator herein reports to the Court regarding significant and/or ongoing events and activities in the liquidation of WCIC as follows:
Brief History
(This item will continue to appear in these
reports for the convenience of the
Court.) Administrative Update
Estate
activity related to evaluating claims has been
completed. Remaining claim activity is being
handled by the affected Guaranty Associations. The Special Deputy is
sending reinsurers claim information and
collecting reinsurance. The
company no longer has any employees. Remaining
administrative work is done by independent
contractors. Litigation activity and
related expense has ended.
Claims Affected Guaranty Associations (UT, ID) (MT, NV and CA now closed) are reporting periodically and paying claims in the ordinary course of business. GA proof-of-claim forms are filed as “contingent” due to the ongoing claim activity. The Liquidator anticipates that all Class 3 level claims will be paid in full. Guaranty Association claims for administrative expenses (class 2) will also be reviewed and paid to the extent allowed. The Special Deputy made an “early access” distribution to the Utah Property and Casualty Guaranty Association in the first quarter of 2005 of $869,731.50. During the fourth quarter of 2006, the Special Deputy sought and received court approval to make another early access distribution to all affected guaranty associations to the full extent of their approved class 2 and class 3 claims. The total amounts distributed to GAs are as follows:
Other ClaimsGeneral creditor class claims are not covered by
the guaranty associations. All class 6
(general creditor class) claims have been determined except for a Class 6 reinsurance claim which is
from Wasatch Crest Mutual Insurance Company, in
Liquidation. Ancient
records of the WCIC company and its predecessor
companies have been reviewed. Records no longer
considered necessary for either historical or practical use
have been destroyed pursuant to the liquidation
order entered in this case.
All public information regarding
the liquidation including GA contacts,
liquidation orders, web-based and downloadable POC forms and other information is available
on the Utah Insurance Receivers' Office web
site at www.utinsreceivers.org.
Financial statements for the estate and the
quarterly reports for the estate are also available
on the Liquidator’s internet website.
There have been no material changes in the
financial position of the company since the last
report other than reserve
adjustments due to GA activity. Since cash has
been paid out to claimants, investment income to
the estate has been reduced. Reinsurance Miscellaneous |