The insolvency of Mission Insurance Company and affiliated insurers was the largest Property and Casualty insurer failure at the time of its liquidation on 9/12/1987. 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 were direct or indirect subsidiaries of the Mission Insurance Group, Inc.
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.
In an effort to accelerate the closure of the estate, the California Liquidator 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.
A comprehensive plan developed for closing the Mission companies was filed with the Los Angeles Superior Court on August, 2, 2002.
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 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.
Current Status:
All claims that are eligible for distribution from the estate have been approved and partially paid. NO NEW CLAIMS ARE BEING ACCEPTED BY THE ESTATE.
There have been subsequent collections by the Mission estate that have necessitated several distributions in the last 15 years.
A recent reinsurance collection has resulted in the Mission and Mission National estates having sufficient assets to complete a further distribution to occur in the next 12 months (from 1st qtr. of 2020).
The Missouri HAIC estate is not closed and has a payable to the two Mission estates. When the Missouri estates close, it is likely that a further, and perhaps final, distribution will occur.
As it now appears, the impending distribution will be to the approved Mission general creditor class of claims (class 6), and to further payment of interest to the approved Mission National policyholder class of claims (class 5). No current calculation is available.
