MO Dept. of Insurance Takes Over two KC-based Workers Comp Companies

Cole County Circuit Judge Thomas Brown granted the petition of Scott B. Lakin, the Director of the Missouri Department of Insurance (MDI), and placed two Kansas City-based workers compensation insurers in receivership as part of a transaction to sell their assets to Meadowbrook Insurance Co.

Lakin was named as the “statutory rehabilitator” for the Casualty Reciprocal Exchange and Equity Mutual Insurance Co., which are selling their tangible assets and renewal rights for existing insurance policies to Meadowbrook Group Management.

The two reciprocal and mutual insurers are members of the Dodson Group of Kansas City, which gave its consent to the rehabilitation.

The order places the two companies directly under the control of the MDI for an unspecified period, stays any legal proceedings against them for 90 days, and essentially places the MDI in charge of negotiating the sale to Meadowbrook.