We have been informed that Casualty Reciprocal Exchange was ordered Liquidated, effective August 18, 2004. Casualty Reciprocal Exchange issued workers’ compensation insurance policies in the State of North Carolina.

            The best available information suggests that approximately 75 potential claims exist in North Carolina.

            The North Carolina Insurance Guaranty Association, (NCIGA) will begin processing and paying "covered claims" as required by North Carolina law. In anticipation of activation of the NCIGA, they have started the process of securing claim files and related documents.

               Pursuant to N.C. Gen. Stat. §58-48-85, proceedings in Casualty Reciprocal Exchange cases are stayed in the Deputy Commissioner Section of the Industrial Commission for 120 days. Any party to any proceeding that is stayed may, upon application and notice, seek a vacation or modification of such stay in an individual case. Motions for relief from stay for all cases at the Deputy Commissioner level of the Industrial Commission should be addressed to Chief Deputy Commissioner Stephen Gheen and served upon the NCIGA. Motions to vacate a stay for cases at the Full Commission level of the Industrial Commission should be directed to Mr. Phillip Hopkins, Docket Director.

               The contact for the NCIGA is:

William C. Delbridge
North Carolina Insurance Guaranty Association
Post Office Box 176010
Raleigh, NC 27619-0610
Phone: (919) 783-9813
Fax: (919) 783-5262

            If any claimant or insured employer should experience any problems with Casualty Reciprocal Exchange claims, questions should be directed to: Stephen T. Gheen, Chief Deputy Commissioner, (919) 807-2540 or gheen@ind.commerce.state.nc.us. Communication by e-mail is requested if possible, though not required.

            The Industrial Commission website (www.comp.state.nc.us) will be updated as needed with additional information.