California Insurance Commissioner John Garamendi announced Monday that a second court-approved early-access distribution of $110 million from the failed Mission Insurance Cos.' trusts will be made to 47 insurance guaranty associations.
The guaranty associations collect assessments from solvent insurance companies to pay claims against insolvent insurers. The Mission companies were seized in October 1985. Because of their insolvent financial condition, they were ordered by the Department of Insurance to be liquidated in February 1987.This second distribution, together with an initial distribution of $107 million made in June 1991, makes a total cash distribution to date of $217 million, the commissioner said.
The distribution includes $50 million from the Mission Insurance Co. Trust, $50 million from the Mission National Insurance Co. Trust and $10 million from the Enterprise Insurance Co. Trust.
In addition to the case distributions, $116 million in statutory deposits are being held by 25 states for payment to claimants of the Mission companies. The total of $333 million represent 63.87 percent of the $521.4 million in benefits paid by guaranty associations through the end of 1991.