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Latest News

2017 Assessments / Refunds

The Board of Governors met in December and did not authorize any 2017 assessments based on 2016 Net 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

2016 Assessments

The Board of Governors did not authorize any assessment for 2016.

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.

2016 Insolvencies

Lumbermen’s Underwriting Alliance (LUA) – was placed into liquidation by the Missouri Department of Insurance on May 23, 2016.

2014 Insolvencies

Freestone Insurance Company, formally known as Dallas National Insurance Company – was placed into liquidation by the Delaware Department of Insurance on August 15, 2014.

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.

1/1/15 – 12/31/15
$29,360,000
1/1/16 – 12/31/16
$29,390,000
1/1/17 – 12/31/17
$29,760,000
1/1/18 – 12/31/18
$30,400,000

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.

1/1/15 – 12/31/15
$5,870,000
1/1/16 – 12/31/16
$5,880,000
1/1/17 – 12/31/17
$5,950,000
1/1/18 – 12/31/18
$6,080,000

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:

Date
Amount
7/1/14 – 6/30/15
$
1,476
7/1/15 – 6/30/16
$
1,475
7/1/16 – 6/30/17
$
1,488
7/1/17 – 6/30/18
$
1,523

Insolvency Activity as of December 31, 2014

Below are 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”.

Total Loss and Expenses Incurred as of 12/31/2015

 
Auto
Work Comp
Other 1
Other 2
Title
HIH
$
-
$
9,193,672
$
-
$
-
$
-
Amwest Surety
$
-
$
1,016
$
-
$
905,215
$
-
Reliance
$
24,301,641
$
52,080,559
$
707,340
$
9,895,948
$
-
PHICO
$
-
$
5,718
$
495
$
1,685,726
$
-
Millers
$
848,391
$
-
$
-
$
-
$
-
Home
$
15,809,814
$
12,503,867
$
-
$
185,885
$
-
Fremont Indemnity
$
250
$
35,411,629
$
-
$
18,642
$
-
Legion
$
79,624
$
18,004,128
$
77,567
$
7,836,892
$
-
Casualty Reciprocal Exchange
$
7,371
$
24,713,899
$
-
$
101,476
$
-
Shelby Casualty
$
1,265,192
$
64,145
$
-
$
110,826
$
-
Shelby Insurance
$
220,770
$
289,374
$
-
$
7,808
$
-
MIIX Ins
$
-
$
-
$
-
$
237,254
$
-
Guarantee Title
$
-
$
-
$
-
$
-
$
175,223
Park Avenue
$
-
$
11,790,201
$
-
$
-
$
-
Inc Corp of NY
$
149,866
$
-
$
-
$
-
$
-
Imperial Casualty Ins
$
-
$
580,536
$
-
$
-
$
-
Atlantic Mutual Insurance Co
$
269,426
$
56,172
$
-
$
1,148
$
-
Centennial Insurance
$
40,826
$
855,843
$
-
$
17,287
$
-
First Sealord Surety
$
-
$
-
$
-
$
313,146
$
-
Frontier Ins Co
$
-
$
-
$
-
$
5,260
$
-
Lumbermens Grp
$
1,713,021
$
10,422,895
$
-
$
54,176
$
-
ULLICO Casualty Co
$
6,171,841
$
3,158,012
$
-
$
98,083
$
-
American Fellowship
$
8,624,055
$
-
$
1,112,374
$
25
$
-
Freestone Ins Co
$
-
$
7,136,895
$
-
$
-
$
-
Lincoln General Ins Co
$
62,454
$
-
$
-
$
-
$
-
Lumbermens Underwriting Alliance
$
-
$
1,953,008
$
-
$
-
$
-
Castlepoint National Ins
$
-
$
-
$
-
$
-
$
-
All Other
$
67,415,311
$
47,834,045
$
15,713,492
$
103,729,209
$
-