Michael F. Easley, Governor
Buck Lattimore, Chairman

Bernadine S. Ballance, Commissioner
Thomas J. Bolch, Commissioner
Laura K. Mavretic, Commissioner
Renée C. Riggsbee, Commissioner
Christopher Scott, Commissioner
Dianne C. Sellers, Commissioner

North Carolina
Industrial Commission




TO:         All Interested Parties

FROM:   Chairman Buck Lattimore

DATE:    September 10, 2002

RE:         Consolidated Freightways Corp.

            Consolidated Freightways Corp. has filed Chapter 11 bankruptcy.  The following information is the most current information available to the North Carolina Industrial Commission.

We have received reports that workers’ compensation benefits are not being paid in all cases.  Some claimants are reporting receiving benefit checks that have not been honored.

Consolidated Freightways was insured after October 1, 1996 in North Carolina.  The coverage history appears to be as follows:

            USF&G                                               October 1, 2000 to present

            NC Insurance Guaranty Assoc.            October 1, 1996 to September 30, 2000

The NC Insurance Guaranty Association is successor in interest to Reliance Insurance Company.  Reliance Insurance Company is in Liquidation.

Prior to October 1, 1996, Consolidated Freightways was owned by CNF, Inc.  CNF, Inc was an approved self-insured in North Carolina.  We have communicated with Debra F. Schramm, Director of Risk Management, CNF, Inc., who advises that CNF, Inc. will continue to pay claims during the period of self-insurance in normal course.

The North Carolina Insurance Guaranty Association advises that all claims with an injury date during their coverage period, October 1, 1996 to September 30, 2000, will be processed.  The NC Guaranty Association is retrieving Consolidated Trucking claim files.   Persons with claims arising during the applicable period should contact:

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

For claims arising during the period of insurance with USF&G, we have been notified that there was a temporary interruption in workers’ compensation benefits due to a misunderstanding with Sedgwick Claims Management, their third-party administrator.  At this time, it is the Commission’s understanding that all workers compensation benefits have been reinstated and medical providers should be paid for all claims arising during the applicable period.  Individual plaintiffs should again contact Sedgwick with any questions and if they are unable to resolve matters, they should contact Meg Felice at Discovery Insurance Company at 1-800-878-2660, ext. 3130.

If any claimant does not receive benefits to which they are lawfully entitled or should benefits awarded be suspended or terminated for unexplained reasons, please notify the Industrial Commission.  Questions or concerns regarding Consolidated Freightways Corp. should be directed to:  Stephen T. Gheen, Chief Deputy Commissioner, 919-807-2540 or gheen@ind.commerce.state.nc.us.  Due to the volume of inquiries, email communication is requested if possible, though not required.

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

N.C. Industrial Commission ·   4340 Mail Service Center ·   Raleigh, NC 27699-4340
Phone:  (919) 807-2500 ·   Fax:  (919) 715-0282
NCIC Home Page:  http://www.ic.nc.gov/