Commonwealth of Pennsylvania
Office of Liquidations, Rehabilitations
and Special Funds
Legion Insurance Company
Villanova Insurance Company
PLEASE KEEP THIS MATERIAL
PLEASE READ THIS MATERIAL IN ITS ENTIRETY
FAILURE TO FOLLOW THE CLAIMS
SUBMISSION INSTRUCTIONS HEREIN
WILL RESULT IN THE DENIAL OF YOUR CLAIM
TO THE POLICYHOLDERS, DEBTORS, PRINCIPALS, OBLIGEES,
CLAIMANTS, CREDITORS AND ALL OTHER PERSONS INTERESTED IN THE
AFFAIRS OF LEGION INSURANCE COMPANY (IN LIQUIDATION)
AND VILLANOVA INSURANCE COMPANY (IN LIQUIDATION)
NOTICE IS HEREBY GIVEN:
The Commonwealth Court of Pennsylvania ordered Legion Insurance Company (Legion) and Villanova Insurance Company (Villanova) into liquidation effective July 28, 2003. M. Diane Koken, Insurance Commissioner of the Commonwealth of Pennsylvania, was appointed the Statutory Liquidator, and was ordered to take possession of Legion and Villanova’s property and to liquidate their business. Deputy Insurance Commissioner William S. Taylor oversees the liquidation on her behalf.
This information is important. It is recommended that you read it carefully before contacting the Liquidator’s Office with questions. You may also want to consult your attorney or insurance advisors before you proceed.
To Legion Indemnity Company policyholders: All information enclosed is directed to claimants against the estates of Legion Insurance Company (In Liquidation) or Villanova Insurance Company (In Liquidation). Legion Indemnity Company is a separate entity in liquidation by the Illinois Director of Insurance. Claims against Legion Indemnity Company may not be filed using the enclosed Proof of Claim form.
A Guaranty Association may cover certain claims under a Legion or Villanova Insurance policy. Guaranty Associations have been created under state laws to protect insureds, residing in the state whose insurance company became insolvent and was ordered liquidated, against certain types of policy claims, subject to both various statutory defenses and claim limitations. Property insurance claims are directed to the appropriate Guaranty Association in the State where the property is located. Workers compensation claims are directed to the appropriate Guaranty Association in the state where the claimant resided at the time of the incident and all other casualty insurance claims are directed to the appropriate Guaranty Association in the state where the insured maintained its residence or principal place of business. A list of the addresses and pertinent numbers of guaranty associations is enclosed…DO NOT FILE A PROOF OF CLAIM WITH A GUARANTY ASSSOCIATION. ALL PROOFS OF CLAIM MUST BE FILED WITH THE LIQUIDATOR OF LEGION OR VILLANOVA.
If you have and want to pursue a claim against Legion or Villanova, you must file a proof of claim in order to have your claim considered. Detailed instructions for filing a proof of claim are compiled in a separate enclosed document. Proofs of claim must be filed no later than June 30, 2005 at 5:00 p.m. EST.
You are a third party claimant if you have a claim against a Legion or a Villanova insured, which may be covered by the insured’s insurance policy. You may either file a claim with the Statutory Liquidator or pursue legal action against the insured to recover your claim. If you file a claim with the Liquidator, filing of the claim shall operate as a release of the insured’s liability to you on that cause of action up to the amount of applicable policy limits. If the Liquidator avoids coverage of the claim, this release becomes null and void.
A proof of claim must be filed even if a claim was made against Legion or Villanova prior to liquidation, and a separate proof of claim form must be filed for each claim you have. A proof of claim shall include the following: A proof of claim form containing 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 additional proof of claim forms, you may make copies of the one attached, request them from the Statutory Liquidator at the address below, or download them from the Department website: www.ins.state.pa.us.
It is important to note that although Legion and Villanova are insolvent, they have significant assets, including reinsurance that must be collected by the Liquidator. It will be several years before all of Legion and Villanova’s assets are collected and distribution amounts can be determined. To participate in a distribution you must file a proof of claim, particularly where there is no guaranty association coverage or where the claim exceeds the limits of such coverage. It is important that you keep Legion or Villanova fully advised of all developments in these cases so that Legion and Villanova can use this information to recover funds from reinsurers and thereby potentially increase the distribution to policyholders and creditors. Claims for losses under policies of insurance have the highest priority for payment other than administrative expenses.
Whenever a claim is based upon an instrument in writing, a copy of the document should be attached to the proof of claim. If the document has been destroyed, a statement of the facts and circumstances of the loss must be filed, under oath, with the claim.
The Order of Liquidation enjoins all persons from instituting or continuing any action at law or in equity or any attachment or execution against Legion and/or Villanova, the Statutory Liquidator or the Commissioner as Statutory Liquidator. All persons indebted to or having any property of Legion or Villanova in their possession, directly or indirectly, are hereby notified to tender an account of the indebtedness and to pay the same and deliver such property to the Statutory Liquidator.
CHANGE OF ADDRESS NOTIFICATION
YOU ARE REQUIRED BY ARTICLE V OF THE INSURANCE DEPARTMENT ACT TO NOTIFY THE STATUTORY LIQUIDATOR OF YOUR CHANGE OF ADDRESS. FAILURE TO DO SO MAY JEOPARDIZE YOUR RECOVERY FROM THESE ESTATES.
Included with this Notice is material which answers frequently asked questions regarding the liquidation process. Please review this material carefully.
This notice and the information contained herein are in summary form and may not contain all necessary information for your particular situation. You are urged to consult an attorney if you have any questions. All claims are subject to payment only in accordance with applicable law.
General questions about the liquidation procedure should be directed to the
Statutory Liquidator at:
Statutory Liquidator of Legion and Villanova Insurance Companies
P.O. Box 59239
Philadelphia, PA 19102
Legion and Villanova Phone: 215-979-7879
Proof of claim forms should not be submitted to the above Philadelphia, PA address. Proof of claim forms must be submitted to the Milwaukee, WI address listed on the enclosed proof of claim form.