CASTLEPOINT NATIONAL INSURANCE COMPANY CLAIMS UPDATE
All claims open as of the Mar. 31, 2017 liquidation date, and which are eligible for Insurance Guaranty Association coverage, should now be at the appropriate Guaranty Fund. Those claims are deemed filed with the Guaranty Fund, and the entirety of your claim will be administered by the Fund. There is no need for you to file a Proof of Claim against Castlepoint National Insurance Company (Castlepoint) or any other form required unless requested by the Guaranty Fund to do so.
Certain Castlepoint claims were generated under policies that were written through Castlepoint companies that were not licensed in a specific state to underwrite policies ("non-admitted business"). Non-admitted business claims are not covered by Guaranty Funds. Those claims should now have been returned to the policyholder for handling. The policyholder is entitled to a Proof of Claim against the residual assets of the Castlepoint estate. If the claim against the policy was open as of the liquidation date, then the policyholder has a deemed filed claim against the estate and does not need to file the Proof of Claim form. However, for the purpose of establishing lines of communication about the status of the claim, the Liquidator encourages all policyholders of non-admitted business claims to file the Proof of Claim form. Please include an email address for communications regarding the claim.
Other Castlepoint policyholders have been or will be notified that claims under their policy will not be covered by a Guaranty Fund because the policyholder has a net worth in excess of Guaranty Fund limits (such limits vary by state). In several states the Guaranty Fund will continue to administer the claim and bill the policyholder for payments and expenses related to that claim. In other states with net worth coverage limitations, the Guaranty Fund will return the claim to the policyholder for them to arrange administration and payment of the claim. In either scenario the policyholder has a deemed filed claim for payments and expenses of the claim, but again the Liquidator does encourage the policyholder to file the Proof of Claim Form they have been sent to establish lines of communication regarding the claim.
Policyholders, primarily those with General Liability occurrence coverage where there is a likelihood of a late presented claim, are encouraged to file a Proof of Claim and mark the claim as "Contingent and Undetermined". Many state Guaranty Funds will not accept a new filed claim after the claims bar date, Dec. 31, 2017 in Castlepoint's case, unless such a "Contingent and Undetermined" claim has been filed with the Liquidator.
Please view the Liquidator's website at www.caclo.org for other pertinent information about the Castlepoint liquidation.
If you need more specific information about your situation, please email the Liquidator at CNICPOCs@caclo.org or call the message line at 415-676-5084.
