Susan L. Donegan,
Commissioner of the Vermont Department of Financial Regulation
|Liquidator’s Agent||George K. Bernstein|
Ambassador Insurance Company (In Liquidation)
P.O. Box 40
Montpelier, VT 05601
|Rehabilitation Order||November 10, 1983|
|Liquidation Order||March 10, 1987|
|Claims Bar Date||March 1, 1988|
|Latest Activity||November 29, 2012|
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 $343 million. 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 18, 2012 requesting that the Vermont Superior Court enter an order to establish a date (Final Claim Date) by which claimants with timely-filed unresolved claims against Ambassador, including Policyholder Protection Claims, must amend and perfect these claims (Claim Amendment). The Liquidator will not consider Claim Amendments to claims that have been previously approved or disapproved by the Court.
A hearing on the Liquidator’s motion was held on October 16, 2012, and the 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 must submit their final proofs of claim together with any evidence in support of their claim. After December 31, 2013, the Liquidator will not be permitted to receive or process amendments to or accept new evidence for any previously filed claim. The Final Claim Date established by the Court will cut-off all claims and claim development against Ambassador and will allow the Liquidator to begin the process of winding up the liquidation estate after nearly three decades of proceedings.
The Liquidator will adjudicate and then, with the Court’s approval, either pay or deny, in whole or in part, any claims that are amended on or before the Final Claim Date. After the Liquidator’s determinations of all remaining fourth priority claims are approved by the Court (and satisfied if it is determined that Ambassador is liable for any portion of such claims), the Liquidator can then make payment to approved fifth priority claimants with any remaining funds.