Merced Property & Casualty Co.
Estate Manager: Rommel Adao
Email Address: AdaoR@caclo.org
Telephone Number: (415) 676-5037
Liquidation Date: 12/03/2018
POC Final Filing Date: 06/30/2019
Website: http://www.mercedpcins.com
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On November 8, 2018, the Camp Fire started in Butte County, California, and by November 16 the fire had caused at least 85 civilian casualties and destroyed 18,793 structures, including 13,696 single-family homes. On November 16, 2018, Merced informed the Commissioner that due to the Camp Fire and the number of homeowner policies issued in that area, Merced's financial status would be negatively impacted to the extent that Merced would be insolvent.

On November 30, 2018, the Commissioner filed an application for appointment as liquidator based on Merced's impaired financial condition. Following a December 3, 2018 hearing on the Commissioner's application, the court issued an order appointing the Commissioner as Liquidator of the Merced estate. The court found that Merced was insolvent and there existed sufficient factual and legal grounds for the Commissioner to liquidate and wind up the business of Merced.

As of December 31, 2019 the Merced Estate, in coordination with the California Insurance Guarantee Association (CIGA), has paid approximately $71.2 million in loss payments to insureds and loss expenses and currently estimates an additional $7.8 million in expected case reserves to develop over the next couple quarters. In addition, CIGA has paid out approximately $3 million in unearned premium refunds.

As of June 30, 2019, all of Merced's liquidation estate operations are now managed from the CLO's San Francisco office. The estate has filed a $26.6 million proof of claim in the Pacific Gas & Electric (PGE) bankruptcy proceeding seeking recovery of the estate's expenses incurred to date as well as a reserve for future costs of administration. Additionally Merced's claim in the bankruptcy seeks recovery of the $3 million of unearned premium refunded to policyholders, as well as a claim for the equitable value of the entity (surplus) at the time of the Camp Fire. The Estate filed its first status report and fee application with the court and attended a status conference on September 5, 2019. The court accepted the status report and approved the liquidation fees and expenses. The Atwater home office building and land have been placed under an exclusive listing with the Merced branch of CB Richard Ellis Real Estate.