Conservation and Liquidation Office

Serving the California Insurance Commissioner

If you are looking for general information about the conservation or liquidation process, please consult our FAQ (Frequently Asked Questions).

If you are looking for information about a specific insurance company that has been placed under conservation or liquidation by the State of California, please visit our Insolvent Companies page.

CLO Mission

On behalf of the Insurance Commissioner, the CLO acts to rehabilitate and/or liquidate, under Court supervision, troubled insurance enterprises. The CLO operates as a fiduciary for the benefit of claimants, handling the property of the failed enterprises in a prudent, cost-effective, fair, timely, and expeditious manner.

Proof of Claim Assignment

The Conservation and Liquidation Office (CLO) recognizes the rights of claimants to assign their approved claims. The CLO is obliged to ensure that assignments are valid and that the processing of assignments does not create an undue burden on estate resources. Read More...

	In The News

Order Granting FIC Rehabilitator's Motion to Dismiss FPIC Liquidator's Petition for FIC Liquidation
Frontier Pacific Insurance Company July 15, 2010 - The New York Liquidation Court dismissed the petition to liquidate Frontier Insurance Company (FIC), the parent company of Frontier Pacific Insurance Company (FPIC) on the grounds that only the Superintendant of Insurance under NY law has that authority. However, the Court finds it necessary to examine the progress of the Rehabilitator, order that the Rehabilitator come up with a rehabilitation plan for restoring FIC to solvency and give Interested Parties an opportunity to be heard regarding the Rehabilitators prior efforts and future plans. ... Read More...
ELIC Opt-Out Trust Update
Executive Life Insurance Company The Opt-Out Trust receives approximately 33% of Executive Life Insurance Company ("ELIC") assets which are distributed to approximately 27,300 former ELIC policyholders ("Opt-Outs") who elected to terminate their policies. A distribution of $211 million of Altus Litigation Funds was made to Opt-Out policyholders in February 2006. Presently the remaining assets of the Opt-Out Trust consist of (1) distributions allocated to policyholders with whom contact has been lost, in most cases due to bad addresses (funds for those for whom contact has been lost will be escheated to the last known state of residence), and (2) the settlement proceeds of Mutuelle Assurance Artisinale De France ("MAAF") (one-third of the recovery of a default judgment in the name of defendant, MAAF) which became... Read More...
CLO receives $529 million from U.S. Life Insurance Company
Superior National Insurance Companies June 29, 2010 - The Conservation & Liquidation Office announced the receipt of $529 million from U.S. Life Insurance Company, an American International Group (A.I.G.) subsidiary, in partial satisfaction of a judgment affirming the Final Arbitration Award in favor of the Superior National Insurance Companies, a workers compensation insurer in liquidation. The payment was made on June 18, 2010 pursuant to an agreement between the parties. Under the terms of the agreement, the California Insurance Guarantee Association immediately received $186 million to apply to their Workers Compensation account. The balance of $343 million was received by the estates for future distributions to Superior National Insurance Companies creditors pursuant to California Insurance Code Section 1033. This is a... Read More...
Order Approving Rehabilitation Plan
Golden State Mutual Life Insurance Company June 24, 2010 - Los Angeles Superior Court Approves Insurance Commissioner's Rehabilition Plan And Assumption Reinsurance Transaction For Golden State Mutual Life Insurance Company The Conservator of Golden State Mutual Life Insurance Company today announced that the Los Angeles Superior Court approved his comprehensive rehabilitation plan and assumption reinsurance agreements for Golden State Mutual Life Insurance Company ("Golden State Mutual") with IA American Life Insurance Company ("IA American"). The rehabilitation plan and assumption reinsurance transaction will preserve and maintain the value, continuous coverage and contractual benefits for the holders of in-force life, health and disability insurance policies and annuity contracts issued by Golden State... Read More...
Golden State Mutual Life Insurance Company Rehabilitation Plan
Golden State Mutual Life Insurance Company The Insurance Commissioner of the State of California as Conservator ("Conservator") of Golden State Mutual Life Insurance Company ("Golden State Mutual") has entered into a comprehensive rehabilitation plan and agreements with IA American Life Insurance Company ("IA American"), subject to court approval, which will preserve and maintain the value, continuous coverage and contractual benefits for the holders of in-force life, health and disability insurance policies and annuity contracts issued by Golden State Mutual. The rehabilitation plan and the agreements forming the plan are collectively referred to as "Rehabilitation Plan." The Rehabilitation Plan and agreements forming the plan provide that holders of Golden State Mutual's in-force life, health and disability policies and annuity... Read More...
Insurance Commissioner Poizner Announces Resolution of Golden State Mutual Insurance Company
Golden State Mutual Life Insurance Company Sale to Strong Insurance Company Protects Consumers, Creditors February 26, 2010 - California Insurance Commissioner Steve Poizner today announced that in order to protect policyholders, Golden State Mutual Life Insurance Company has entered into a letter of intent with IA American Life Insurance Company to negotiate a reinsurance agreement to transfer all in-force insurance policies of Golden State Mutual. Golden State Mutual, the largest minority-owned life insurance company in California, was placed into conservation on Sept. 30, 2009 when the company's surplus dropped below the minimum required by the State of California. Golden State Mutual had recorded six consecutive years of net operating losses and was operating in a hazardous financial condition. "State law requires that we ... Read More...
Court Upholds $500 Million Award Against U.S. Life Insurance Co.
Superior National Insurance Companies Ninth Circuit Says Workers' Compensation Reinsurer Must Also Pay Millions in Interest January 6, 2010 - California Insurance Commissioner Steve Poizner today announced that the United States Ninth Circuit Court of Appeals upheld an arbitration award requiring U.S. Life Insurance Co. to pay reinsurance of more than $500 million to Superior National Insurance Companies, workers' compensation insurer in liquidation. "This is huge and welcome news," Commissioner Poizner said. "Upholding this award means that that hundreds of millions of dollars will be available to pay the claims of workers injured on the job through the California Insurance Guarantee Association (CIGA) and other guarantee associations. I thank our staff for working hard on this matter." U.S. Life is a subsidiary of... Read More...
CLO SOLICITS BIDS FOR GOLDEN STATE MUTUAL LIFE INSURANCE COMPANY'S INFORCE INSURANCE POLICIES
Golden State Mutual Life Insurance Company November 25, 2009 - THE CLO SOLICITS BIDS FOR INFORCE INSURANCE POLICIES TO ALL INTERESTED PARTIES OF GOLDEN STATE MUTUAL LIFE INSURANCE COMPANY The Conservator has prepared a bid package for the purpose of soliciting interest from potential assuming reinsurers for the company's inforce blocks of life, annuity and health business. Summary Data of Business Offered If you are interested in obtaining a bid package please contact Joe Holloway at HollowayJ@caclo.org Read More...
Request for Dismissal
PAULA Insurance Company October 22, 2009 - Request for Dismissal entered for release of the estate of Paula Insurance Company Read More...
Declaration of Compliance
PAULA Insurance Company October 20, 2009 - Declaration of Compliance: Declaration of Scott Pearce Confirming Distribution of Assets Pursuant to Court Order and Closing the Estate of Paula Insurance Company ... Read More...