Questions & Answers Regarding the Liquidation Process For NNIC

Last Updated: May 7, 2019

Judge Niess of the Dane County Circuit Court in Madison, Wisconsin has ordered Northwestern National Insurance Company of Milwaukee, Wisconsin (NNIC) into liquidation effective May 2, 2019. The following will assist in answering frequently asked questions about making claims and the liquidation procedure.

The Wisconsin Office of the Commissioner of Insurance has been assigned the responsibility of liquidating NNIC. Questions concerning the liquidation should be directed to:

Northwestern National Insurance Company of Milwaukee, Wisconsin
8200 Beckett Park Drive, Suite 201
West Chester, OH 45069
Phone (513) 889-5663, option 6
Email nnic.liquidation@northwesternnic.com

Or

Special Deputy Liquidator
Northwestern National Insurance Company of Milwaukee, Wisconsin
Office of the Commissioner of Insurance
P.O. Box 7873
Madison, WI 53707-7873
Email ocinnicliquidation@wisconsin.gov

All questions regarding your insurance coverage through your policy with NNIC should be directed to the guaranty fund of your state. 

 

Information Regarding the Liquidation of NNIC

1. What happens when a company becomes insolvent and is liquidated?

Liquidation is similar to bankruptcy. When an insurance company is liquidated, the State of Wisconsin Office of the Commissioner of Insurance gathers the company’s assets and determines what liabilities, such as bills and claim payments, it has. The Special Deputy Liquidator then develops a plan to distribute the company’s assets according to law and submits the plan to the Court for approval.

2. You say my insurance company was ordered liquidated. Does this mean my policy is worthless?​

No. Although your insurance company has been placed into liquidation, the guaranty association in the state where you reside or where the property is situated may be obligated to provide coverage under insurance policies issued by your insurance company subject to certain exclusions and limitations. Coverage of your claim under a guaranty association law is determined by the guaranty association in accordance with its guaranty association act, not by the Liquidator. Any claims or portion of it that is not covered by a guaranty association becomes a claim against your insurance company estate. The amounts deemed to be an allowed claim will be paid to the extent funds are available, on an equal basis with all other claims in the same category. These claims may be paid in full, in part, or not at all, depending on the available assets. These claims may not be paid for several years. This is a copy of the notice to policyholders and claimants. If you have questions about your coverage you should contact your state guarantee fund:

3. What is a guaranty association?

A guaranty association is an association of all insurers licensed to write covered property and casualty or covered life and health insurance in a state. Subject to statutory eligibility and coverage limits, a guaranty association assumes the policy obligations of licensed insolvent insurers in that state for resident policyholders in that state. A guaranty association obtains funds to meet its obligations by assessing the member companies.


4. Will my claims be paid in full by the guaranty associations?​

Coverage is subject to certain statutory limits and exclusions contained in the various state laws creating the guaranty associations. In no case will payments exceed the applicable policy limits. If you have questions about your coverage you should contact your state guarantee fund:

5. I believe I have a claim against NNIC. How do I make a claim?

Claims filed against NNIC by general creditors, stockholders, trade creditors, governmental agencies, reinsurers, cedants, arbitrators, agents, former employees, former officers and directors and other persons interested in the affairs of the company are handled by the Special Deputy Liquidator. To file a claim for monies owned to you by NNIC, you must file a Proof of Claim form and any supporting documentation with the Special Deputy Liquidator. Proof of claim forms must be postmarked – or if submitted via facsimile or email, bear a transmission date – on or before November 2, 2019. If you fail to file a Proof of Claim form by that date, your claim may not be considered to be timely filed. Failure to file a timely claim may result in denial of your claim or consideration of your claim at a lower priority level. Proof of claim forms can be obtained here.

Valid and substantiated claims become claims against the estate of the NNIC and will be paid at some time in the future to the extent funds are available, on an equal basis with all other claims in the same category. These claims may be paid in full, in part or not at all, depending on the available assets. These claims may not be paid for several years.

a. Claims of general creditors.
General creditors are persons or organizations, including law firms, trade creditors, etc., who provided services to NNIC prior to the May 2, 2019, date of liquidation, for which they were not paid, or any person or organization who believes they are owed money by NNIC regardless of the time period in which the services were incurred, etc. If you believe you have a claim, it will be necessary for you to complete a Proof of Claim form. If you have documentation to support your claim, you should provide a copy of that documentation with your Proof of Claim form.

b. Claims for agent balances or commissions.
If you were a NNIC agent or producer, and you have a claim for earned commissions, it will be necessary for you to complete a Proof of Claim form. If you have documentation to support your claim, including your most recent statement, you should provide a copy of that documentation with your Proof of Claim form. If you do not have that documentation, you should complete the information requested on the Proof of Claim form and submit it as directed.

c. Other types of claims.
If you have any other type of claim (including litigation related to NNIC), describe your claim (i.e. stockholder, employee, taxes, license fees, assessments, etc.). You should attach documentation to support your claim to the Proof of Claim form and submit it as directed.

 

6. How do I file a claim against NNIC?

If you believe you have a claim against NNIC, you must file a Proof of Claim form and any supporting documentation with the Special Deputy Liquidator. Even if you have a claim already pending with NNIC, you must file a Proof of Claim form. If your claim is a new claim, you should attach documentation to the Proof of Claim form to document your claim. If your claim has already been submitted to NNIC, you must complete the Proof of Claim form, but it is not necessary for you to attach additional documentation. If additional information is needed at a later date, you will be contacted.

If you have more than one claim against NNIC, you must file a separate Proof of Claim form for each claim you make. You may make copies of the enclosed Proof of Claim form or you may obtain additional Proof of Claim forms by using one of the methods outlined in Question 8 below.​

A Proof of Claim form must contain 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 to the claimant. Please refer to Question 8 for instructions on how to request a Proof of Claim form.

 

7. What is the deadline for filing a claim?

Proof of Claim forms must be postmarked – or if submitted via facsimile or email, bear a transmission date – on or before November 2, 2019. If you fail to file a Proof of Claim form on or before that date, your claim may not be considered to be timely filed. Failure to file a timely claim may result in denial of your claim or consideration of your claim at a lower priority level, depending upon consideration of “good cause” under the late claims provision of §645.61 (2), Wis. Stat.

 

8. How do I request a Proof of Claim form?

There are several ways to request a Proof of Claim form. They are:

9. Where do I send my Proof of Claim form?

All completed, signed Proof of Claim forms and supporting documentation may be submitted by mail, facsimile or email as follows:

Special Deputy Liquidator
Northwestern National Insurance Company of Milwaukee, Wisconsin
Office of the Commissioner of Insurance
P.O. Box 7873
Madison, WI 53707-7873

Facsimile (608) 267-6237

Email ocinnicliquidation@wisconsin.gov


10. Who do I call if I have questions?

If you have any questions about the Proof of Claim process, please send an email to ocinnicliquidation@wisconsin.gov.

If you have questions about your NNIC insurance coverage please contact your state guaranty fund: