Piedmont Ordered into Liquidation in South Carolina

The South Carolina Department of Insurance announced that Piedmont Insurance Company recently became the subject of an Order of Liquidation which declared the company insolvent and directed the South Carolina Department of Insurance to liquidate the company as required under South Carolina law.

Any and all policyholders and other persons who have a claim or demand of any kind against Piedmont must file and complete the proper proof of claim form with the Liquidator on or before June 30, 2003. All such claims should be in writing and must be submitted under oath on one of the forms prescribed by the Liquidator.
Proof of claim forms can be obtained by writing the South Carolina Department of Insurance, Attention: T. Douglas Concannon, Associate General Counsel, Post Office Box 100105, Columbia, South Carolina 29202-3105 or call (843) 423-5541.

Under the Liquidation Order, the Liquidator is authorized and directed immediately to take possession and control of any and all assets of Piedmont and administer them under the general supervision of the Court. The Liquidator is also directed to exercise any and all of Piedmont’s rights in connection with any collateral or other assets being held for the benefit of Piedmont by any person or entity.

Upon issuance of the Liquidation Order, the rights and liabilities of Piedmont and its creditors, shareholders, and all other persons interested in this estate became fixed as of the date of the entry of the Order. It also requires all persons or other legal entities to pay all sums or premiums due Piedmont, and deliver any and all property of Piedmont, personal or real, of every kind or nature, to the Liquidator or her designated representative(s).

All agents, brokers, premium finance companies, and other persons, other than insureds, responsible for the payment of premiums shall be obligated to pay to the Liquidator any unpaid earned premium and all earned premium of Piedmont and all unearned commissions as of the date of the Liquidation Order. Failure to comply with the provisions of the order could result in the imposition of civil penalties by the Director of Insurance of not more than for $1,000 for each act in violation of said statute.

Every person who has represented Piedmont as an agent or broker must provide a copy of the Notice of Liquidation and Notice of Legal Rights and Obligations by first class mail to the last address contained in the agent’s records to each policyholder or other person named in any policy issued through the agent by Piedmont, if such agent has a record of the address of the policyholder or other person. The agent or broker must also provide his name and address to each former policyholder and identify the policy affected.

Notice by a general agent satisfies the notice requirement of this paragraph for any agents under contract to him or her. Each agent obligated to give notice pursuant to this paragraph must file a report of compliance with the Liquidator. Any agent failing to give notice or file a report of compliance as required for whom the Liquidator has not waived such requirement may be subject to payment of a civil penalty of not more than $5,000 and may have his or her license revoked.

Topics Agencies South Carolina