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Letter to the Editor

Liquidator Appointed for Markham General Insurance

The Financial Services Commission of Ontario (FSCO) has issued notice that the regulator will take possession of the assets of the troubled insurer, Markham General Insurance Co.

FSCO says its action against Markham had followed close monitoring of the company’s financial affairs and after having been supplied by financial records from the Board of Directors. The Superintendent took this action to protect policyholders because Markham General Insurance Co., could no longer meet its obligations.

On July 24, 2002, the Ontario Superior Court of Justice on the application of the Superintendent of Financial Services at the Financial Services Commission of Ontario, ordered Markham General Insurance Company to be wound-up under the Winding-up and Restructuring Act. Deloitte and Touche have been appointed as provisional liquidators.

Note to shops: John Norris, of the Collision Industry Action Group (CIAG) office reports that his office is being contacted by shops that have not been paid yet by Markham General Insurance. The Toronto Star is reporting that Markham General's cheques are bouncing, and they do not have the money to pay all claim losses. Norris advises shops to read the information below on the Compensation Corporation and to check his website under "Insurance" for updates.

INFORMATION FOR SHOPS

If my insurer fails, how do I submit a claim?

When a company is declared insolvent, a liquidator "winds up" its affairs, including the processing of claims. The liquidator will write to all policyholders and claimants concerning claim procedures. Bear in mind, however, that the liquidator will need some time to examine the insolvent insurer’s records to gather the necessary information.

Does PACICC determine the value of my claim?

No. The liquidator determines the value of your claim, but PACICC will want assurance that the amount is reasonable.

What happens if I disagree with the amount offered?

If you disagree with the amount offered and you cannot resolve the matter with the liquidator, you can try to bring an action in court; to do this you will need the court’s prior approval.

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