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:    November 4, 2002

RE:         Liquidation of Legion/Villanova Insurance Companies

            Mutual Risk Management Ltd. is the parent company of The Legion Companies, which includes both Legion Insurance Company and Villanova Insurance Company. Both companies remain in Rehabilitation by Order of the State Court of Pennsylvania under supervision of the Pennsylvania Commissioner of Insurance.

            Legion ceased paying claims in North Carolina effective last week. However, a State Court of Pennsylvania has not Ordered Legion into Liquidation.

            The North Carolina Commissioner of Insurance sought and obtained an Order from the General Court of Justice, Superior Court Division, Wake County declaring Ancillary Liquidation of Legion in North Carolina. This Order effectively requires the North Carolina Insurance Guaranty Association (“NCIGA”) to pay Legion’s “covered claims” in North Carolina.

            The Pennsylvania Department of Insurance has ordered Legion to surrender claim files for North Carolina to the NCIGA. The transfer of files will require several days. North Carolina claimants who have been receiving claim payments may experience some interruption of benefit checks during this transition. The NCIGA estimates the delay will be between two and four weeks. Emphasis is being placed on emergency medical situations.

            To reduce any delay in payments, the NCIGA will directly process all claims. Claimants 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

It appears that the North Carolina Liquidation of Legion may result in a high volume of claims. Consequently, claimants are requested to communicate with the NCIGA initially by facsimile transmission.

            Pursuant to N.C. Gen. Stat. §58-48-85, Chief Deputy Commissioner Stephen T. Gheen has issued an order staying all proceedings 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 Gheen and served upon the NCIGA.

            The Industrial Commission is providing the NCIGA with any information requested regarding Legion claims. Questions or concerns regarding Legion claims 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 more information about the liquidation process becomes available.

Read Chairman Lattimore's May 8, 2002 Memo

Read Chief Deputy Commissioner Gheen's May 2, 2002 Order

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