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Markham
General Update
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| August
16, 2002 |
Announcements
from the Property and Casualty Insurance Compensation Corporation
(PCICC) regarding Markham General) |
| July
31, 2002 |
MGIC
update from IBAO |
| June
6, 2002 |
Information
Regarding MGIC Policy Refunds |
| April
26, 2002 (thestar.com) |
Local
Auto Insurer Dumps Cherry & 80,000 Others |
| April
15, 2002 |
MGIC
Bulletin - All Policies Cancelled as of June 15 |
| April
15, 2002 |
From
Bob Carter (IBAO) re: Markham General |
| April
11, 2002 |
What
is Holman Doing about MGIC? |
| April
11, 2002 (1:56 pm) |
Fate
of Markham General Insurance Co. - as per IBAO |
| April
3, 2002 (3:00 pm) |
Markham
General Insurance Co. - Bulletin to Brokers |
| March
6, 2002 |
Holman
Cancels Brokerage Agreement with MGIC |
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Email
from Robert Carter received July 30:
I have reviewed the Ontario Superior Court of Justice Winding-Up
and Restructuring Act Order dated July 24th, which on application
from the Superintendent of Financial Services of Ontario,
grants the Winding-Up of Markham General Insurance Company
effective July 23rd.
The COURT has ordered that Deloitte & Touche be appointed
Liquidator.
The COURT ORDER states that any cheques or drafts not
exceeding $1,000 in respect of claims for loss under policies
which cheques or drafts were issued by the Company prior to
the making of this ORDER and which are presented for payment
thereafter, may be paid out of the estate and effects of the
Company.
The COURT ORDERS that the Liquidator may pay all valid
statutory accident benefit claims under the Statutory Act
of Benefits Schedule to the Insurance Act (Ontario) until
September 16th, 2002 or such later date as this COURT
may order.
The COURT further orders that all persons including
without limitation employees, brokers, insurance agents or
salespeople do cooperate with the Liquidator.
The COURT ORDERS that all agents or brokers holding
any money with respect to premiums to the account of the Company
forthwith pay such accounts to the Liquidator and that such
amounts shall not be reduced or offset as a result of this
Order over the Winding-Up Order or for any amounts which may
be due to any policyholders, agents, or brokers with respect
to unearned premiums notwithstanding any terms or contractual
agreements to the contrary.
The COURT ORDERS that the Liquidator shall make the
books and records available to PACICC in order to provide
PACICC with the information necessary to enable PACICC to
make voluntary compensation payments pursuant to terms of
PACICC's Memorandum of Operation. Unfortunately, there is
a bit of a glitch with respect to premium refunds in that
in PACICC's Memorandum of Operation, they are to return 70%
of premiums to a maximum of $700 on policies in force at the
time of Winding-Up. Markham General was wound up on July 24th,
however, policies were cancelled effective June 15th. PACICC
does not cover AB claims, but I expect the Liquidator will
try to arrange coverage through the Facility Association.
There are some provisions in the ORDER that we are
having reviewed by legal counsel, and we will provide you
with further information as it develops. I expect to be meeting
with FSCO and the Liquidator this week.
If you have questions with respect to your accounts with Markham
General, you are asked to contact Sherre Newell at Markham
General.
Robert J. Carter, AIIC
Chief Executive Officer
Insurance Brokers Association of Ontario |
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June
6, 2002 - MGIC Bulletin Regarding Policy Refunds
We are pleased to advise the following information regarding
the status of refunds:
- All EFT transactions (debits and credits)are being processed
tomorrow, June 6, 2002.
- Full pay cheque refunds have all been released up to
and including May 3rd.
All EFT transactions will be automatically debited or credited
in the customers account. All full pay cheque transactions
will be mailed directly to the address on file, or to your
office if you have requested special handling.
We truly appreciate your patience in regards to these refunds
being mailed later than expected and extend our sincerest
thanks for your support.
Sherre Newell
AVP Personal Insurance & Marketing |
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MGIC
Bulletin Monday April 15, 2002
As undertaken with the Financial Services Commission of Ontario
on Friday April 12, 2002, and approved by the Superintendent,
Markham General Insurance Company hereby announces that:
ALL in-force policies will be cancelled effective 12:01
a.m. on June 15, 2002.
Registered notices of cancellation will be issued directly
to all Named Insureds, Lessors, Lienholders and Mortgagees
in accordance with their respective terms and statutory conditions
of the policy. All cancellation credits will be calculated
on a pro-rata basis. Applicable refunds will be calculated
and will follow shortly after the notices are issued. Polices
that pay by Electronic Funds Transfer will have all deductions
stop when the notices are issued and any applicable charges/refunds
will be processed directly from/into the corresponding bank
account.
We understand that many of our brokers will be transferring
this book of business to another Insurer as of the cancellation
date, however FSCO has indicated that we are still required
to issue the Registered Cancellation Notices to all of the
policyholders.
MGIC can produce an electronic file of the Personal Lines
policy data in CSIO 2000 standard format that includes policyholder
banking information for EFT policies. A separate file is produced
for Auto and for Habitational. If you have not already made
your request for this file and you wish to do so, kindly e-mail
to Sidd Patel at s.patel@mgic.ca requesting that we
produce the file and advise us where the file should be sent.
These files do take time to set up and run, but we will process
them as quickly as possible. Loss ratios as of the end of
March 2002 are almost completed and will be sent to you shortly
as well.
We anticipate the processing and issuing of the Cancellation
Notices in approximately 2 weeks, and we will attempt to process
all outstanding endorsements by then.
For those policyholders with questions regarding the status
of our claims operation, MGIC will continue to honour all
of its obligations with respect to new and existing claims.
During this difficult time, MGIC will do its utmost to facilitate
the transition of coverage in an attempt to minimize the impact
on policyholders. Further communications will be forthcoming
as information becomes available. If you have any questions,
kindly e-mail d.olsen@mgic.ca and I will try to respond
as quickly as possible.
Debbie Olsen
Senior Vice President, Operations
Markham General Insurance Company
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From
the desk of Bob Carter (IBAO) re: Markham General
Late on Friday, April 12th it appears negotiations reached
a conclusion and an announcement will be made sometime on
Monday, April 15th. I believe that notice will be sent to
Markham General brokers by Markham General on April 15th.
I anticipate that we will be meeting with Markham General
and FSCO on Monday, April 22nd to finalize details. Hopefully,
we will be able to provide you with more information later
today.
Robert J. Carter, AIIC
Chief Executive Officer
Insurance Brokers Association of Ontario |
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What
is Holman Doing about MGIC?
Holman Insurance Brokers Ltd. has made arrangements to move
the entire MGIC customer accounts to ING Insurance Company
on mass if the need arises. In the meantime, a letter has
gone out to all customers explaining the options available.
Although we have arrangements with ING, as your Broker we
are looking at each individual customers situation and placing
you with the most appropriate Insurance Company. We strongly
recommend our customers contact us immediately to discuss
your individual situation. As you can appreciate, all
of our staff are working overtime to fulfill the needs of
our customers. Bearing in mind service at times may be slower
than normal, we are however proactively looking after your
interests. Your patience at this time is greatly appreciated.
Yours truly,
Paul Holman
Paul Holman, BA, CAIB, RIB (Ont)
Vice President
Holman Insurance Brokers Ltd.
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Letter
from IBAO regarding fate of Markham General Insurance Co.
It appears that a decision on the fate of Markham General
personal lines will be forthcoming in the next 24 hours. It
seems that a single day cancellation will take place. We suggest
very strongly that you contact your other markets to negotiate
a mid term portfolio rollover.
As we learn more we will advise.
Robert J. Carter,
AIIC Chief Executive Officer
Insurance Brokers Association of Ontario |
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MGIC
Bulletin April 3, 2002 - Communicated to Holman Insurance
Brokers Ltd. via email from Markham General Insurance Co.
(3:00 pm)
As we communicated to you on February 27th, MGIC voluntarily
undertook to cease writing new business until it replenished
its lost underwriting capacity. We were hopeful that a solution
to the Company’s underwriting capacity issues could be solved
quickly but the actions taken in that regard have not resulted
in a capital injection as planned.
Due to the Company’s inability to stabilize the balance sheet
with interim funding that was part of the plan presented to
the Financial Services Commission of Ontario on February 25th,
MGIC has no choice but to cease issuing renewal notices and
endorsements on existing in-force policies and effective immediately,
must rescind your authority to bind such transactions on MGIC’s
behalf. A separate communication will be distributed later
today concerning the details associated with the cessation
of issuing renewals and endorsements.
We are all very disappointed with the need to issue this bulletin
but there are no other options available to the Company. MGIC
will provide whatever assistance we can to make information
available to you concerning the performance of your respective
portfolios so you can re-market accounts as required.
We thank you for your support of MGIC during this most difficult
time.
John L. McGlynn
President & CEO
Markham General Insurance Co. |
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Holman
Cancels Brokerage Agreement with MGIC
To John McGlynn
President & CEO
Markham General Insurance Co.
It is with regret that we must inform you that Holman Insurance
Brokers Ltd. can no longer afford to transact business with
your company viewing the conditions imposed upon us in your
e-mail.
Please accept this letter as notice of cancellation of our
contract dated April 20, 2000. As per your contact, condition
9. Termination of Agreement we hereby give you notice to
take effect 12:01 am July 1,2002. Holman Insurance Brokers
Ltd. will take full responsibility for the replacement of
all renewals and notify the clients of the action we are
taking. In some situations, our clients may request mid
term cancellation and we ask that your staff cooperate in
a smooth transition to the new insurer.
With regards to the computerization costs that you wish
to offset against future commissions we wish yo advise that
we do not believe your contract allows you to do this and
we ask that you do not deduct those amounts from our commission
cheques. We will however work as fast as possible to reduce
these costs and our IT staff has already taken action to
seek an alternative connection until such time as we no
longer require access to our data.
The management and staff at Holman Insurance Brokers Ltd.
would like to thank you for the opportunity to work with
your company and staff and wish you personally success in
the future.
Yours sincerely,
Holman Insurance Brokers Ltd.
Paul Holman
Paul
Holman
Paul D. Holman, BA (Hons.), CAIB, RIB (Ont.)
Vice President
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