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Mission Insurance Companies
Estate Trust Officer: Scott Pearce
Email Address: PearceS@caclo.org
Telephone Number: (415) 676-5013
Conservation Date: 10/31/1985
Liquidation Date: 02/24/1987
POC Final Filing Date: 09/12/1987
Affiliate Companies:
Enterprise Insurance Company
Holland America Insurance Co.
Mission National Insurance Co.
Mission Reinsurance Corp.
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The insolvency of Mission Insurance Company and affiliated insurers was the largest Property and Casualty insurer failure at the time of conservation. The Mission companies wrote complicated Primary, Excess and Surplus insurance and reinsurance, much of which is of a long-tail nature.

Mission Insurance Company ("MIC"), Mission National Insurance Company ("MNIC") and Enterprise Insurance Company ("EIC") are California domiciled companies, which primarily wrote P&C business. Holland-America Insurance Company ("HAIC") and Mission Reinsurance Corporation ("MRC") are domiciled in Missouri. HAIC wrote P&C business while MRC reinsured P&C business. These companies are direct or indirect subsidiaries of the Mission Insurance Group, Inc., which was later, renamed as Danielson Holding Corporation ("DHC").

The Mission Insurance companies' insolvency proceedings began with a court ordered conservation on October 31, 1985 due to their hazardous financial condition. Efforts to rehabilitate the companies did not succeed and on February 24, 1987 the companies were ordered into liquidation. Ancillary proceedings in California for HAIC and MRC were initiated concurrently with the Missouri Insurance Director's obtaining a receivership order.

The CA Insurance Commissioner ("Commissioner") entered into an Agreement of Reorganization, Rehabilitation, and Restructuring in 1989, which was approved by the court on August 15, 1990. This agreement resulted in the transfer of assets and liabilities of the Mission companies into individual liquidating trusts. The effect was to legally separate the assets and liabilities from their corporate charters and licenses, which in turn preserved certain tax advantages inuring to the benefit of claimants.

In an effort to accelerate the closure of the estate, the Commissioner adopted an Amended Final Liquidation Dividend Plan, which required claimants, who have previously filed timely contingent and undetermined ("C&U") claims, to file amended proofs of claim quantifying their claims by August 18, 1995. The Commissioner's Amended Final Liquidation Dividend Plan was approved on January 9, 1997 and affirmed upon appeal in 1998.

A comprehensive plan developed for closing the Mission companies was filed with the Los Angeles Superior Court on August, 2, 2002. Six Early Access and four Interim distributions have been made to date for MIC and MNIC, while EIC has completed seven Early Access, four Interim Distributions, and a Final Distribution.

Recent key events include:

  • On October 7, 2003, the Los Angeles Superior Court approved the Commissioner's motion to set December 31, 2003, as the valuation date by which all claims must be liquidated and made certain pursuant to section 1025 of the California Insurance Code.
  • On June 4, 2004, the Los Angeles Superior Court authorized the closing of ancillary proceedings for MRC and HAIC. A Declaration of Compliance was filed with the court for each of these estates on July 29, 2004. MRC and HAIC are both officially closed as of this date.
  • On June 25, 2004, the Insurance Commissioner filed a motion with the Los Angeles Superior Court to set Section 1025 date for the Liquidation of General Creditor and other Non-Policyholder claims for Final Distribution. The court approved the motion and set August 2, 2004 as the cut-off date.
  • On September 24, 2004, the Los Angeles Superior Court approved the Order which Authorizes Distribution and Closure of Enterprise Insurance Company Trust. Following a Final Distribution in December 2004, a Declaration of Compliance was filed with the court on December 17, 2004. The Enterprise estate is officially closed as of this date.
  • On May 31, 2005, the Los Angeles Superior Court approved the Fifth Interim Distribution and distribution was made July 2005.
  • On January 24, 2006, the Superior Court of the State of California for the County of Los Angeles granted Commissioner's Motion which Authorizes Distribution And Closure Of Case As To Mission Insurance Company Trust And Mission National Insurance Company Trust
  • On March 24, 2006, a Final Distribution was completed for Mission Insurance Company Trust and Mission National Insurance Company Trust.
  • June 30, 2006 - Court grants Commissioner's motion to reopen Enterprise for the purpose of a further distribution to policyholders. Distribution dividend to policyholders will reach 100% of approved POC.
  • July 24, 2006 - Per completion of the March 2006 Final Distribution for Mission Insurance Company Trust and Mission National Insurance Company Trust, a Declaration of Compliance was filed and the estates are closed as of this date.
  • August 4, 2006 - A Final Distribution was completed for Enterprise Insurance Company Trust based on its re-opening on in June 2006.
  • December 29, 2006 - Per completion of the August 2006 Final Distribution for Enterprise Insurance Company Trust, a Declaration of Compliance was filed and the estate is closed as of this date.
  • In July 2008, the Mission and Mission National estates received court approval to distribute shares of stock held by the estates to claimants in accordance with a court approved rehabilitation plan. The estates anticipated distributing the shares prior to year-end 2008.
  • On November 7, 2008, the Liquidation Court approved a cash distribution for both Mission Insurance Company ($28 Million) and Mission National Insurance Company ($93 Million). Both distributions are anticipated to be released prior to year-end 2008