CIGA Can't Be Forced to Use Lumbermens Deposit to Pay Expenses

Liquidators for Lumbermens Mutual Casualty Co. can’t require the California Insurance Guarantee Association to tap into the insolvent carrier’s security deposit to cover general administrative expenses before approving requests for reimbursement, an Illinois appellate court ruled. The 1st Appellate Court of Illinois on Friday affirmed a trial court decision finding that California law prohibits the Golden State’s guaranty association from using security deposits to pay for anything other than benefits and related costs commonly referred to as allocated loss adjustment e...