A substantial number of business policyholders purchased historical insurance coverage from one of the Lumbermens Companies, which include Lumbermens Mutual Casualty Company, American Manufacturers Mutual Insurance Company, and American Motorists Insurance Company. Those policyholders will want to pay special notice to the August 1, 2013 order of the Circuit Court of Cook County, Illinois, setting the deadline for filing claims in the liquidation of the Lumbermens Companies for November 10, 2014 at 4:30 p.m. C.S.T.
The recent claims deadline order follows the May 8, 2013 order of the Circuit Court placing the Lumbermens Companies into liquidation. Under the court’s liquidation orders, all rights and liabilities of the Lumbermens Companies and their policyholders, creditors, and interested parties are fixed as of May 10, 2013.
The following are key aspects of the claims filing deadline that all Lumbermens Companies policyholders should know to protect their interests and file claims in a timely way:
Proofs of claim and supporting documents are to be filed with the Liquidator at the following contact information according to specific transmission instructions laid out in the August 1 order:
Liquidator of the Lumbermens Companies
c/o the Office of the Special Deputy Receiver
222 Merchandise Mart Plaza, Suite 960
Chicago, IL 60654
Phone: (312) 836-9500
As required by statute, the proofs of claim must have a statement signed by the claimant that includes all of the following information and representations:
a) particulars of the claim, including consideration given for it;
b) identity and amount of security on the claim;
c) payment made on the debt, if any;
d) sum claimed is justly owing and statement that there is no setoff, counterclaim, or defense to the claim;
e) any right of priority of payment or other specific right;
f) name and address of claimant and, if applicable, the claimant’s attorney;
g) claimant’s social security or federal employer identification number; and
h) supporting documentation, including, if necessary, a statement of the fact and of the circumstances of the loss or destruction of any supporting documents.
Policyholders must file a proof of claim for contingent claims by November 10, 2014 at 4:30 p.m. C.S.T., but have until until the following year (November 10, 2015 at 4:30 p.m. C.S.T.) to submit evidence establishing that the claim has been liquidated. Any policyholder whose contingent claim is timely filed but not liquidated by the November 10, 2015 deadline may participate in distributions of estate assets at the fifth priority level (a lower priority level than liquidated policyholders claims, which participate at the fourth priority level), unless otherwise directed by the court.
Policyholders with coverage from any of the Lumbermens Companies will want to take special notice of this recent claims filing deadline, reviewing their coverage programs to determine whether they have potential claims against the Lumbermens Companies and assessing what steps they can take to begin supporting those claims.