Lumbermens Enters Rehabilitation: What Are the Consequences for Its Policyholders?

more+
less-

Lumbermens Mutual Casualty Company and American Manufacturers Mutual Insurance Company (part of the Lumbermens Mutual Group and formerly known as Kemper) (“Lumbermens”), after years of struggling financially under the supervision of the Illinois Department of Insurance, recently entered rehabilitation proceedings. Policyholders who purchased workers’ compensation and other types of insurance from Lumbermens should be aware that many opportunities for recovery remain.

The Chancery Division of the Circuit Court of Cook County, Illinois, entered an agreed Order of Rehabilitation, establishing separate estates for each of the companies. The Director of the Illinois Department of Insurance serves as the Rehabilitator to oversee the Lumbermens rehabilitation. The Illinois Insurance Code controls both the duties and powers of the Rehabilitator, and the rights and obligations of policyholders. The Rehabilitator, operating under court order, has taken possession and control of all of Lumbermens’ property, contracts, and rights of action. The Order of Rehabilitation restrains and enjoins anyone with knowledge of the Order from bringing or further prosecuting any claims against Lumbermens, except in the rehabilitation proceedings.

Please see full Alert below for further information.

LOADING PDF: If there are any problems, click here to download the file.

Published In: Bankruptcy Updates, Civil Remedies Updates, General Business Updates, Labor & Employment Updates, Worker’s Compensation Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Reed Smith | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »