Lumbermens Placed Into Rehabilitation

After nearly a decade of supervision by the Illinois Department of Insurance, Lumbermens Mutual Casualty Company and its sister company, American Manufacturers Mutual Insurance Company (collectively, "Lumbermens"), have been placed in rehabilitation by order of the Cook County Illinois Chancery Court ("Order") on motion of the State of Illinois Director of Insurance. See Lumbermens order of rehabilitation 7-2-12 . Rehabilitation is the first step to what will soon be the complete liquidation of the insurers.

Since 2003, Lumbermens and American Manufacturers have been operating under the supervision of the Director of Insurance through a series of corrective orders and run-off plans. Throughout that time, the insurers have been reporting to the Director of Insurance and the Lumbermens' Working Groups of the National Association of Insurance Commissioners (NAIC) and the National Conference of Insurance Guaranty Funds (NCIGF).