Employers National Insurance Company ("ENIC") was a wholly owned subsidiary of Employers Casualty Company ("ECC") placed in receivership on February 11, 1994 with Jack M. Webb appointed as Special Deputy Receiver ("SDR") by the Commissioner of Insurance.
ENIC's receivership proceeding was closed on October 31, 2005 after the SDR collected all recoverable assets and distributed available funds to creditors in accordance with Article 21.28 of the Texas Insurance Code. Class 1 claims were paid in full and holders of approved Class 2 claims received partial prorata distributions on their claims. Other lower priority claims against ENIC were not processed because no funds were available to pay them.
Subsequently, pursuant to an order date May 11, 2009, the ECC SDR distributed funds owed to ENIC to the Commissioner of Insurance. At the request of the Commissioner, the Office of the Attorney General applied for an order reopening ENIC's receivership proceeding so that newly available funds could be paid to its creditors. This order was entered on February 10, 2010. ENIC's receivership proceeding was administratively consolidated with ECC's proceeding and Jack M. Webb serves as SDR of both estates. The application and order reopening the ENIC estate appear in the Receivership Court Documents section of this website.
The receivership court entered an order on April 30, 2010 directing that unprocessed claims against the ENIC estate be adjudicated and classified in accordance with provisions of the Insurer Insolvency Act, Chapter 443 of the Texas Insurance Code. The SDR requested receivership court authority to pay the unpaid balances of previously approved Class 2 claims against ENIC on June 25, 2010. The Court approved this application on July 20, 2010 and the SDR will begin making distributions in early August.
After the remaining claims, substantially all of which are Class 5 general creditor claims, have been adjudicated, the SDR will seek receivership court approval of his claims' determinations and request authority to make distributions to the holders of allowed claims to the extent of available funds.
Interested parties are encouraged to regularly monitor this website for activities in the ENIC receivership proceeding.
