FAQs
Frequently Asked Questions
What happened to Maxicare Life and Health Insurance Company (MLH)?
What happens when an insurance company is in such a condition that the further transaction of business would be hazardous financially to its policyholders, creditors or the public and is liquidated?
Claims Questions
What will happen to my claim?
Since Maxicare Life and Health Insurance Company Liquidating Trust has been ordered into liquidation, will my claims be paid? Will they be paid in full?
Proof of Claim Questions
What do I do if I have a claim against the company that was filed before the date of liquidation and remains unpaid?
I believe I have a claim against a policyholder of the company but I am not a policyholder. How do I make a claim?
If my claim is directly against the company in liquidation, and I am neither a policyholder nor a third party liability claimant, how do I make a claim?
What is a Proof of Claim?
What happens after I file the Proof of Claim?
Do I have to file a Proof of Claim if I reported a loss event to the company in liquidation before it was ordered into liquidation or before it was ordered into rehabilitation?
I am a vendor (medical provider, pharmacy, etc.) and I have a bill for services provided to the company that has not been paid. What do I do to get my bill paid?
What happened to Maxicare Life and Health Insurance Company (MLH)?: Top
Maxicare Life and Health Insurance Company (hereinafter referred to as "MLH") was placed under the supervision of the Missouri Department of Insurance in 2001. The Company ceased the sale of insurance products in late 2001. Subsequently, with the consent of the MLH Board of Directors and shareholders, MLH was ordered by the Circuit Court of Cole County Missouri to be placed in rehabilitation on January 28, 2002 because this life and health insurance carrier was in such a condition that further transaction of its business would be hazardous financially to its policyholders, creditors, or the public. The Cole County Missouri Circuit Court (the "Court") appointed the Director of the Missouri Department of Insurance, as Rehabilitator of MLH. The current Director of Insurance for the State of Missouri is W. Dale Finke. Dennis C. Eckold serves as the Special Deputy Liquidator (SDL) to manage the day-to-day operations of the company and to receive and evaluate all claims.
In order to facilitate the sale of certain licenses (certificates of authority to do business as a life and health insurer), the assets and liabilities of the company were transferred to a liquidating trust. This Liquidating Trust was approved by Court order of the Cole County Missouri Circuit Court on April 12, 2004. The Court has now ordered the Trust to be liquidated in order to resolve any remaining claims.
The following information will help answer most of your questions about potential claims and the liquidation procedure that will occur in this case. The answers below are generally how liquidations are handled, but results may differ based upon individual state laws and the guaranty fund procedures as well as future orders issued by the Circuit Court of Cole County Missouri which is the supervisory court in this matter. You may direct all additional questions concerning MLH to: Maxicare Life and Health Insurance Company Liquidating Trust, 10920 Ambassador Drive, Suite 500, Kansas City, MO 64153, Attention: Dennis C. Eckold, Special Deputy Liquidator. Phone (816) 300-4006. Fax: (816) 880-9393. Website: www.mlhliqtrust.com. E-mail contact: info@mlhliqtrust.com.
What happens when an insurance company is in such a condition that the further transaction of business would be hazardous financially to its policyholders, creditors or the public and is liquidated? Top
The company was originally placed in rehabilitation on January 28, 2002 and has now been placed in liquidation because any further transaction of business by the company would be hazardous financially to its policyholders, creditors, or the public. Since this company was domiciled in the State of Missouri, the Circuit Court of Cole County (the county where the Missouri Department of Insurance is located) appointed the director of the Missouri Department of Insurance as rehabilitator and subsequently as liquidator. The liquidator is charged with gathering the company.s assets and determining its liabilities. Liabilities include operational expenses and claims against insurance policies issued by the company. The liquidation process is conducted under court supervision and according to procedures mandated in Sections 375.1150 to 375.1246, Revised Statutes of Missouri (RSMo 2005).
The Liquidator has appointed a Special Deputy Liquidator (SDL) to manage the day-to-day operations of the company. The liquidation process often takes quite some time to complete.
Claims Questions
What will happen to my claim? Top
Since the date of rehabilitation, claims have been addressed on an ongoing basis. All claims have been received and reviewed by an adjuster and payments have been made to satisfy those claims. You will receive at your last known address a notice of liquidation with information about the processing of your claim as well as a proof of claim (described below), which must be filed in order to make a claim. Warning: False and fraudulent claims will be subject to criminal prosecution under Missouri law.
Since Maxicare Life and Health Insurance Company Liquidating Trust has been ordered into liquidation, will my claims be paid? Will they be paid in full? Top
All valid claims incurred prior to the expiration date of your insurance policy and which have not already been paid will be paid subject to your policy conditions, your policy limits, and subject to available trust assets.
Proof of Claim Questions
What do I do if I have a claim against the company that was filed before the date of liquidation and remains unpaid? Top
If you have a policy claim that was filed with the company prior to the date of liquidation (date) or any other claim against the company, and the claim remains unpaid, you must submit the required proof of claim form. See additional description of proof of claim form below. All proofs of claim must be filed no later than 4:30 p.m. Central Daylight Time, November 16, 2006 to: MLH Liquidating Trust, 10920 Ambassador Drive, Suite 500, Kansas City, MO 64153, Attention: Dennis C. Eckold, Special Deputy Liquidator. Warning: False or fraudulent claims are subject to criminal prosecution.
The Special Deputy Liquidator will document receipt of your claim. If approved in whole or in part, it will be paid from the assets of the company (liquidating trust). If the company does not have enough assets to pay the claim in full, they will be paid according to Sections 375.1150 to 375.1246 (RSMo 2000). You may locate additional proofs of claim forms at www.mlhliqtrust.com.
Failure to file your claim promptly will likely result in a denial of your claim.
I believe I have a claim against a policyholder of the company but I am not a policyholder. How do I make a claim? Top
Third party liability claims against policyholders of the company are made in the same manner as policyholder claims. To file a claim for money you believe the company, or its policyholder, owes you, you must file a proof of claim no later than 4:30 p.m. Central Daylight Time, November 16, 2006.
You should file a claim even if you are unsure whether or not you have a claim. By law, the Special Deputy Liquidator may deny claims filed after 4:30 p.m. Central Daylight Time of November 16, 2006 ("The Bar Date"). If you fail to file a Proof of Claim by this date your claim may be considered late and can thus be denied. Warning: False or fraudulent claims are subject to prosecution.
If my claim is directly against the company in liquidation, and I am neither a policyholder nor a third party liability claimant, how do I make a claim? Top
The Special Deputy Liquidator handles claims filed against the company by general creditors, trade creditors, governmental agencies, reinsurers, agents, employees and any other persons who may have some claim against or other interest in the assets of the company. To file a claim you must submit a Proof of Claim no later than November 6, 2006. Your claim must be received by the SDL prior to 4:30 p.m. Central Daylight Time on November 16, 2006.
You should file a Proof of Claim even if you are unsure whether or not you have a claim. By law, the SDL may deny claims filed after 4:30 p.m. Central Daylight Time of November 16, 2006 ("The Bar Date"). If you fail to file a Proof of Claim by this date, your claim may be considered late and thus denied.
Missouri Insurance Statutes require all persons interested in the assets of the companies to file a form prescribed by the Special Deputy Liquidator (SDL) that provides basic information about the claim and any supporting data or documents that may be requested. Proofs of Claim will be mailed to all parties known to the company who may have a claim against the company. Please print the Proof of Claim form that specifies the other information you must file to have your claim considered. The completed form together with all of the supporting data and documents is referred to as a "Proof of Claim".
What happens after I file the Proof of Claim? Top
The SDL is in the process of collecting assets and calculating the liabilities of the insurer. The SDL will review the Proofs of Claims. If more information is needed with respect to your claim, it will be requested from you. By filing your claim, you agree that you will provide such information necessary to adequately and fairly process your claim. The records of the company may be incomplete or inaccurate and you may need to provide this information. The SDL may require supplemental information or evidence and may require testimony under oath or affidavits to support your claim. Be advised that the SDL is empowered to compel testimony and documents via issuance of a subpoena in order to process your claim. The Proof of Claim will be approved or denied by the Special Deputy Liquidator. A hearing on the Proof of Claim may be required. Appeals may be filed with the Circuit Court of Cole County, Missouri, Division II.
Do I have to file a Proof of Claim if I reported a loss event to the company in liquidation before it was ordered into liquidation or before it was ordered into rehabilitation? Top
Yes. You must file a Proof of Claim even if you reported a loss prior to the date of rehabilitation or the date of liquidation.
I am a vendor (medical provider, pharmacy, etc.) and I have a bill for services provided to the company that has not been paid. What do I do to get my bill paid? Top
All invoices for services provided must be submitted to the Special Deputy Liquidator (SDL) through the Proof of Claim process (described above). You must file a Proof of Claim no later than November 16, 2006. Your claim must be received by the SDL prior to 4:30 p.m. Central Daylight Time on November 16, 2006. The SDL will evaluate your claim and make a determination as to the ability of the estate to make payment on it.