Illinois SC Denies Alpine Ins. Co.’s Liquidation Appeal

The Illinois Supreme Court has denied Alpine Insurance Company’s petition for leave to appeal a Cook County Circuit Court liquidation order entered on June 28, 2000. The Supreme Court decision was rendered on April 4, 2001.

Illinois Insurance Director Nat Shapo had petitioned the Circuit Court for liquidation based on his finding that Alpine was insolvent by over $2.5 million. Company ownership appealed the liquidation order to the Illinois First District Appellate Court, which upheld the liquidation on December 21, 2000. Subsequently, ownership filed the unsuccessful petition for leave to appeal to the Illinois Supreme Court. Prior to the liquidation proceedings, Alpine had been under an Agreed Order of Conservation since Jan. 8, 1999.

Alpine has been in a runoff mode since approximately July 1996. The company’s most recent financial statements reflect total direct premium of $14.5 million in 1996 and $6.7 million in 1997. The company wrote commercial liability and property coverages as well as product liability on a licensed basis in Illinois and on an excess and surplus line basis in 29 other states and the District of Columbia. Alpine was originally incorporated as IMI Insurance Company in March of 1986. The present name was adopted in June 1989.

The company’s ultimate parent is Exstar Financial Corporation, a Delaware domiciled insurance holding company. Exstar also owned Transco Syndicate #1, Ltd., a former member of the Illinois Insurance Exchange (INEX), which was merged into Alpine Insurance Company in December 1995.

The Illinois Insurance Guaranty Fund will be responsible for the covered claims of Alpine’s Illinois policyholders. The Order of Liquidation contains an injunction prohibiting suits against Alpine outside of the liquidation proceedings.