CHICAGO - An Agreed Order of Rehabilitation by the Circuit Court of Cook County, Illinois, has been entered against Millers First Insurance Company (“Millers First”) with the consent of its Board of Directors. During the time that Millers First is in rehabilitation, the Illinois Department of Insurance (DOI) Director, as Rehabilitator, will continue the payment of policyholder claims and policies will remain in force until the expiration of their term.
On June 22, 2012, the Board of Directors consented to start rehabilitation proceedings and the entry of an Order of Rehabilitation. DOI Director Andrew Boron asked for the entry of an Agreed Order of Rehabilitation in his Verified Complaint filed by Illinois Attorney General Lisa Madigan. The rehabilitation became effective July 24, 2012.
Under Illinois law, DOI’s Director is appointed statutory Rehabilitator of the company. During the rehabilitation the company will restructure its business and affairs in an effort to return to profitability. Policyholders will continue to receive claim payments, and policyholder coverage will remain in force until policy expiration. The company will provide timely notices of non-renewal to its policyholders, unless and until its financial condition improves.
Millers First is an Illinois domestic stock insurance company located in Alton, Illinois, previously organized as a mutual insurance company. Upon its conversion to a stock company, Millers First became a subsidiary of Affiliated Mutual Holding Company (“Affiliated Mutual”), an Illinois domestic mutual holding company. The order of rehabilitation of Millers First does not include its Wisconsin domiciled subsidiary Millers Classified Insurance Company. Business of Affiliated Mutual group was primarily conducted in the States of Illinois, Missouri, Iowa and Wisconsin.
A copy of the Order of Rehabilitation is available at www.osdchi.com or by calling 312-836-9500. The Office of the Special Deputy Receiver (OSD), located at 222 Merchandise Mart Plaza, Suite 1450, Chicago, IL, 60654, is assisting DOI Director Boron with the rehabilitation of Millers First Insurance Company.