AMBASSADOR INSURANCE COMPANY
Commissioner of the Vermont Department of Financial Regulation
|Liquidator’s Agent||George K. Bernstein|
|Ambassador Contact||Ambassador Insurance Company (In Liquidation)
P.O. Box 40
Montpelier, VT 05601
|Rehabilitation Order||November 10, 1983|
|Liquidation Order||March 10, 1987|
|Proof of Claims Bar Date||March 1, 1988|
|Latest Activity||January 23, 2015|
Ambassador Insurance Company was a Vermont domiciled property and casualty insurance company that was placed in rehabilitation in 1983 and subsequently ordered liquidated in 1987 due to its insolvency. By law, the Commissioner of the Vermont Department of Financial Regulation (Liquidator) is in charge of liquidating the company under the supervision of the Vermont Superior Court. This website was created to provide information about the status of the liquidation proceeding against Ambassador Insurance Company as well as to provide information on certain key dates and activities that may affect the legal rights of interested persons. If you believe you may have legal rights that may be affected by the activities described herein, you are advised to consult with counsel to preserve your rights and interests.
All interested persons, including policyholders and claimants, were given notice and an opportunity to file a proof of claim against Ambassador after the company was ordered liquidated in 1987.All claims were ordered to be filed by March 1, 1988 or be forever barred (“Bar Date”). Policyholders who did not know whether or not a claim would be asserted against them or the extent or nature of a known claim covered by an Ambassador policy were permitted to file a “Policyholder Protection Claim,” also by March 1, 1988, preserving their ability to request policy coverage in the future.
Since the liquidation order was entered, the Liquidator has been responsible for adjudicating and processing claims by Ambassador’s policyholders, claimants and creditors; managing Ambassador’s assets and investment portfolio; making court-ordered distributions; and, enforcing Ambassador’s legal rights against third parties, among other things
In addition to the collection of reinsurance balances and other debts owed to Ambassador, the Liquidator obtained and collected a final judgment against Ambassador’s former accountants Coopers and Lybrand for $205 million in 2008. The funds paid under the judgment, coupled with Ambassador’s other assets, has enabled the Liquidator to pay all Court-approved fourth priority claims against Ambassador insurance policies with interest. To date, the Liquidator has made six distributions to fourth priority claimants (with interest) totaling more than $352million. Approved fifth priority claims (of creditors and reinsureds of Ambassador) total more than $32 million, but, under the terms of the liquidation order, the Liquidator cannot make distributions to approved fifth priority claimants while fourth priority claims are unresolved.
The Liquidator filed a motion on June 21, 2010, and a revised motion on June 18, 2012, requesting that the Vermont Superior Court enter an order establishing a date (Final Claim Date) by which claimants with timely-filed unresolved claims against Ambassador, including Policyholder Protection Claims, would be required toamend and perfect those claims (Claim Amendment). The Liquidator’s Motion did not change the fact that the Liquidatorwouldnot consider Claim Amendments to claims that hadbeen previously disapproved or approved by the Court.
A hearing on the Liquidator’s motion was held on October 16, 2012, and the Superior Court granted the motion in a written order (Order) on November 28, 2012.The Order set December 31, 2013 as the Final Claim Date by which claimants against Ambassador would be required tosubmit their final proofs of claim together with any evidence in support of their claim.Under the Order, the Liquidator wouldnot be permitted to receive or process amendments to or accept new evidence for any previously filed claim after December 31, 2013. The Final Claim Date would have cut-off all claims and claim development against Ambassador after December 31, 2013, and would haveallowed the Liquidator to begin the process of winding up the liquidation estate after more thanthree decades of proceedings.Under the Final Claim Date Order, the Liquidator would haveadjudicated and then, with the Superior Court’s approval, either paid or denied, in whole or in part, any claims that were amended on or before the Final Claim Date.
HOWEVER, ON APPEAL, THE VERMONT SUPREME COURT REVERSED THE SUPERIOR COURT’S ORDER ESTABLISHING A FINAL BAR DATE. AS A RESULT, THE LIQUIDATOR WILL CONTINUE TO ACCEPT CLAIM AMENDMENTS OF TIMELY FILED POLICYHOLDER PROTECTION CLAIMS THAT HAVE NOT ALREADY BEEN FINALLY DENIED OR ADJUDICATED AND THE LIQUIDATOR WILL RE-OPEN AND REVIEW ANY CLAIM AMENDMENTS FILED BY CLAIMANTS WITH TIMELY FILED PROOFS OF CLAIM THAT WERE TURNED DOWN BECAUSE THE CLAIM AMENDMENT WAS RECEIVED BY THE LIQUIDATOR AFTER DECEMBER 31, 2013.
CLAIMS THAT WERE PREVIOUSLY DISAPPROVED OR APPROVED BY THE COURT WILL NOT BE RECONSIDERED.