White Hall Mutual Questions and Answers



Information about the Liquidation of WHITE HALL MUTUAL Insurance Company 

 
The Commonwealth Court of Pennsylvania has declared White Hall Mutual Insurance Company (White Hall Mutual) insolvent and has ordered the company into liquidation on April 10, 2003.  This booklet will help to answer frequently asked questions about making claims and the liquidation procedure.
 
The Office of Liquidations, Rehabilitations and Special Funds of the Pennsylvania Insurance Department has been assigned the responsibility of liquidating White Hall Mutual, and all questions concerning the liquidation of White Hall Mutual should be directed to the Statutory Liquidator for White Hall Mutual, Capitol Associates Building, 901 North 7th Street, Harrisburg, PA  17102,  (717) 787-7823.
 
1.         What happens when a company becomes insolvent and is liquidated?
 
Liquidation is similar to bankruptcy.  When a company is liquidated, the Insurance Department’s Office of Liquidations, Rehabilitations and Special Funds gathers the company’s assets and determines what liabilities, such as bills and claim payments, it has.  The Statutory Liquidator then develops a plan to distribute the company’s assets according to law and submits the plan to the Court for approval.  The liquidation process is very complex and is expected to take many years.
 
Claims for policy benefits which are the responsibility of a guaranty association have been or will be forwarded to them as appropriate.  Valid claims that are in excess of guaranty association limits, or which are not covered by a guaranty association in whole or in part are to be filed directly with and handled by the Liquidator.  Such claims will be paid by the Liquidator at some time in the future to the extent funds are available. 
 
2.         You say White Hall Mutual was ordered liquidated.  Does this mean my policy is worthless?
 
No.  Although White Hall Mutual has been placed into liquidation, the guaranty association in the state where you reside or where the insured property is situated may be obligated to provide coverage under insurance policies issued by White Hall Mutual subject to certain limitations.  Any claim or portion thereof which is not covered by a guaranty association becomes a claim against the White Hall Mutual estate and filed directly with and handled by the Liquidator, and the amount deemed to be an allowed claim will be paid by the Liquidator to the extent funds are available, on an equal basis with all other claims in the same category.  These claims may be paid in full, in part or not at all, depending on the available assets.  These claims will not be paid for several years.
 
3.         Will my policy be canceled because of the liquidation?
 
A paid White Hall Mutual policy will terminate at its normal expiration, upon replacement or May 10, 2003 (30 days from the date of liquidation), whichever is soonest.
 
4.         What is a guaranty association?
 
A guaranty association is an association of all insurers licensed to write property and casualty or life and health insurance in a state.  Subject to statutory eligibility and claims payment limits, a guaranty association assumes the policyholder obligations of licensed insolvent insurers in that state for residents or property insurance in that state.  A guaranty association obtains funds to meet its obligations by assessing the member companies.
 
5.         Since my company has been placed into liquidation, who will pay my claims?
 
Valid and substantiated claims incurred prior to the termination of the policy will be paid, where covered, by the appropriate guaranty association, subject to policy limits and the limits of the guaranty association.  The Statutory Liquidator of White Hall Mutual will forward your claim to the appropriate guaranty association.  Claims which are not covered by a guaranty association or portions of claims which exceed the statutory obligations of the guaranty association become claims against the estate of the company and handled directly by the Liquidator and payment will be made by the Liquidator at some time in the future to the extent funds are available.
 
6.         Will my claims be paid in full by the guaranty associations?
 
All payments are subject to certain statutory limits contained in the various state laws creating the guaranty associations.  In no case will payments exceed the applicable policy limits.
 
7.         How long will it take for my claims to be paid by the guaranty association?
 
When a company is placed into liquidation, the guaranty associations are typically activated to pay claims as soon as the Court orders the liquidation.  Claim payments usually begin within 90 days after the liquidation order is issued.  However, the waiting period from the time of submission will vary based on the number of claims received, and the time claims are submitted.
 
If you are a policyholder or third party claimant and you currently have a claim pending with White Hall Mutual, you do not need to do anything.  Your claim has been or will be forwarded to the appropriate guaranty association for handling. 
 
8.         I have questions about what is and is not covered by the guaranty association?  Who can answer these questions for me?
 
You can address your questions about your property and casualty guaranty association’s responsibilities to the guaranty association in the state in which you reside.  A list of the property and casualty guaranty associations can be found at the end of this document. 
 
9.         I believe I have a claim against White Hall Mutual but I am not a policyholder or a third party claimant under a White Hall Mutual policy.  How do I make a claim?
 
Claims filed against White Hall Mutual by general creditors, stockholders, trade creditors, governmental agencies, reinsurers, cedants, agents, employees, former officers and directors and other persons interested in the affairs of White Hall Mutual are handled by the Statutory Liquidator.  To file a claim for monies owed to you by White Hall Mutual, you must file a proof of claim form with the Statutory Liquidator no later than 5:00 p.m. EST on April 10, 2004.  If you fail to file a proof of claim form by this date, your claim may not be considered to be timely filed.  Failure to file a timely claim may result in denial of your claim or consideration of your claim at a lower priority level.
 
10.       How do I file a claim against White Hall Mutual?
 
If you had a claim for policy benefits pending on or before April 10, 2003, you do not need to do anything further.  Your claim will be forwarded to the appropriate guaranty association for consideration.  If you have a claim for anything other than a claim for policy benefits which was pending on or before April 10, 2003, you will need to file a proof of claim.
 
If you are reporting a new claim regardless of whether it is for policy benefits after April 10, 2003, it is necessary that you complete and file a proof of claim.   Proofs of claim must be filed no later than April 10, 2004
 
A proof of claim form must contain the original signature of the claimant; a description of the claim and any security interest; whether collateral security or personal security is pledged in accordance with the terms of the policy; documentation of any payments made on the claim; and a statement that the amount is justly owed the claimant. If you require proof of claim forms, you may request them from the Statutory Liquidator at the address below, or download them from the Department website:
www.insurance.state.pa.us.  If you have more than one claim against White Hall Mutual, you may duplicate the proof of claim form to submit each claim separately. 
 
Information regarding specific types of claims follows.
 
a.            Liability Claims.
 
If your claim has already been submitted to White Hall Mutual prior to April 10, 2003, you do not need to do anything else.  Your claim has been or will be forwarded to the appropriate guaranty association for handling.  If, however, you are filing a new claim with White Hall Mutual (In Liquidation), you must complete the proof of claim form and submit documentation to support your claim.  Once a determination is made concerning guaranty association coverage, your file will either be transferred to the appropriate guaranty association or retained at White Hall Mutual (In Liquidation) for handling.  Claims which have some guaranty association coverage will be forwarded as appropriate.  In either case, you will be contacted if additional documentation in required to adjudicate your claim.
 
b.            Other Types of Insurance.
 
If you have a claim which falls into any other category not listed above and your claim has already been submitted to White Hall Mutual prior to April 10, 2003, you do not need to do anything else.  If, however, you are filing a new claim after April 2003, with White Hall Mutual (In Liquidation), you must complete the proof of claim form and submit documentation to support your claim.  Once a determination is made concerning guaranty association coverage, your file will either be transferred to the appropriate guaranty association or retained by the Liquidator for handling.  Claims which have some guaranty association coverage will be forwarded as appropriate.  In either case, you will be contacted if additional documentation in required to adjudicate your claim.
 
c.            Claims for the return of unearned premium and other premium refunds.
 
If you have a claim for the return of unearned premium or other premium refund, you must complete a proof of claim form.  If you have documentation to support your claim, you should provide a copy of that documentation with your proof of claim.  If you do not have documentation, you should complete the information requested on the proof of claim form and submit it as directed.  Valid return premium claims may be paid, where covered, by the appropriate guaranty association, subject to the statute of the guaranty association.  The Statutory Liquidator of White Hall Mutual will forward your claim to the appropriate guaranty association.  Claims which are not covered by a guaranty association or portions of claims which exceed the statutory obligations of the guaranty association become claims against the estate of the company and handled directly by the Liquidator and payment will be made by the Liquidator at some time in the future to the extent funds are available.

d.            Claims for agent commissions.
 
If you were a White Hall Mutual agent and have a claim for earned commission, it will be necessary for you to complete a proof of claim form.  If you have documentation to support your claim, including your most recent statement, you should provide a copy of that documentation with your proof of claim.  If you do not have documentation, you should complete the information requested on the proof of claim form and submit it as directed.
 
e.            Claims of general creditors.
 
General creditors are persons or organizations, including law firms, trade creditors, etc., who provided services to White Hall Mutual prior to the April 10, 2003 Order of Liquidation, for which they were not paid, any person or organization who believes they are owed money by White Hall Mutual (In Liquidation) regardless of the time period in which these services were incurred, etc. If you believe you have a claim, it will be necessary for you to complete a proof of claim form.  If you have documentation to support your claim, you should provide a copy of that documentation with your proof of claim.
 
g.            Claims of former employees, officers and directors.
 
If you are a former employee, officer or director of White Hall Mutual (In Liquidation) and you believe you have a claim, you must file a proof of claim with White Hall Mutual.  Use Item 3 on the proof of claim to provide the necessary information about your claim.  You should attach documentation to support your claim to the proof of claim and submit it as directed.
 
 
11.       What is the deadline for filing a claim?
 
The Commonwealth Court of Pennsylvania has established April 10, 2004, 5:00 p.m. EST, as the deadline for filing claims against White Hall Mutual (In Liquidation).  If you fail to file a proof of claim form by this date, your claim may not be considered to be timely filed.  Failure to file a timely claim may result in denial of your claim or consideration of your claim at a lower priority level.  
 
 GUARANTY ASSOCIATION LISTING
 

 PA P & C Insurance Guaranty Association
 1620 J. F. Kennedy Boulevard, Suite 1850
 Philadelphia, PA  19103
 215-568-1007 FAX 215-568-0737

 DE Insurance Guaranty Assoc.
 220 Continental Drive, Suite 309
 Newark, DE  19713
 302-456-3656 FAX 302-456-3680
   
 MD P & C Insurance Guaranty Assoc.
 305 Washington Ave., Suite 600
 Towson, MD  21204
 410-296-1620FAX 410-828-1265 
 NJ P-L Insurance Guaranty Assoc.
 59-63 Mine Brook Road
 Bernardsville, NJ  07924
 908-953-9533 FAX 908-953-9606