Pacific States Casualty Company ("PSSC") primarily wrote Workers' Compensation and Surety insurance. A rehabilitation plan for this company was approved by the Los Angeles County Superior Court and took effect on July 15, 1993. After PSCC went into conservation on March 1, 1993, the Receivership Court approved an Assumption Agreement on June 15, 1993 between the California Commissioner as Liquidator of PSCC, ULICO Casualty Company ("ULICO") and ULICO Standard of America Casualty Company ("USACC"), which became effective on July 1, 1993, the date PSCC went into liquidation. As part of that plan, ULICO assumed Pacific States' Workers' Compensation policies and certain surety bonds. The Workers' Compensation claims that were incurred prior to liquidation were obligations of the California Insurance Guarantee Association (CIGA) and, until late 2000, were handled by ULICO as a third party administrator for CIGA. The surety bond claims on bonds that were not assumed by ULICO were claims against the estate and subject to the proof of claims process. ULICO handled these surety claims on behalf of the Commissioner.
There are four remaining reinsurance treaties covering the PSCC Workers' Compensation book of business. These treaties cover various underwriting years and reinsurers. In accordance with the Assumption Agreement, the recoverables on this book of business belong to CIGA. A final distribution of approximately $1.4 million was made to all claimants with approved claims. All funds returned as undeliverable were escheated to the California State Controller's Office. The estate was closed via a Minute Order on March 18, 2003 and affirmed by the Court on December 30, 2003.
