COMMERCIAL INSURANCE ALLIANCE, A RECIPROCAL INSURANCE COMPANY

CIA was licensed as a reciprocal insurer under Chapter 629, Florida Statutes, in 2006. CIA wrote commercial multi-peril liability, commercial auto liability and surety policies. The company was located in Jacksonville, Florida, but closed its main office in 2010. At its maximum level, it is estimated that CIA had no more than 5,000 policyholders. However, under an Order from the Office of Insurance Regulation dated August 19, 2009, CIA’s certificate of authority was suspended and it was ordered to cease writing new or renewal insurance business. At the time of the liquidation, all of the CIA policies had expired and CIA was in a “run-off” mode. Thus, as of the liquidation date, there were no known policyholders.

On April 2, 2013, the court approved the First Interim Claims Report and Recommendation on Claims. On April 15, 2013, the Receiver mailed 61 Notice of Determination letters to all known claimants. Classes 1 through 11 were evaluated and the adjudicated amount owed will be shown in the Amount Recommended Claimant field along with the Classification of the claimant. The Objection Filing Deadline was May 31, 2013.

On January 7, 2014 the court approved the Order Approving Receiver’s Report and Directing the Assessment of the Subscribers of Commercial Insurance Alliance (“CIA”). On March 26, 2014, the Receiver mailed 1,941 Assessment letters to all subscribers. Under Florida law and pursuant to the CIA insurance contract, all former subscribers of CIA are responsible for the claims and expenses of CIA and can be assessed for the purpose of collecting sufficient funds to pay those claims and expenses. The deadline for payment is April 15, 2014.