Excalibur had been in run-off status since 2003, and under regulatory supervision since at least 2013. A Pennsylvania court has now placed Excalibur into liquidation based on three grounds: (1) insolvency – Excalibur’s admitted assets did not exceed its liabilities plus the greater of its capital and required surplus or capital stock; (2) Excalibur’s total adjusted capital was less than its mandatory control level risk-based capital; and (3) Excalibur’s board of directors and sole shareholder consented to liquidation. Under Pennsylvania law, the Insurance Commissioner was appointed Statutory Liquidator vested with certain powers and title to Excalibur’s property. Additionally, various procedures related to winding down the company and notifying interested parties were put in place. A separate order was also entered staying all litigation and legal claims against Excalibur and directing all relief sought against the company to be pursued by filing a proof of claim in the liquidation proceedings. Miller v. Excalibur Reinsurance Corp., Case No. 1 ERC 2016 (Pa. Comm. Ct. July 18, 2016) (Liquidation Order & Order Granting Stay).
This post written by Michael Wolgin.
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