Municipal Mutual was incorporated in February 1992 and commenced business as of October 1993. Initial capitalization of $10 million was funded by a certificate of contribution issued to the city of Gardena Financing Authority. The company was primarily a small underwriter of various California only municipality coverage's, primarily excess liability coverage. Commencing in January 2000, the company became involved in the provision of primary California workers compensation insurance and ventured beyond the limited scope of restricting coverage to municipalities.
Municipal Mutual was deemed to be insolvent and was ordered liquidated as of October 2006. With the liquidation of Municipal Mutual all claims were transferred to the California Insurance Guarantee Association (CIGA) for continuing claims administration. If you have a question on any continuing workers compensation claim, you should contact CIGA at 818-844-4300.
The Liquidator filed pleadings to close the Municipal Mutual estate, and to pay all remaining assets to CIGA. Additionally, the one remaining reinsurance contract was assigned to CIGA to collect any additional money that may have been owed under the contract. The court hearing to address the closure and the reinsurance assignment was scheduled for January 31, 2012.
The Court approved our closing motion. The remaining money was distributed to the California Insurance Guarantee Association, and any recoverable reinsurance obligations were transferred to the Guarantee Association. A Declaration of Compliance with the order was acknowledged by the Court on Feb. 2, 2012 which officially closes the estate.