A New Hampshire court has approved the commutation, settlement, and release agreement between The Home Insurance Company (in Liquidation) and Providence Washington Insurance Company (PWIC), as successor to Unigard Mutual Insurance Company, which merged with Seaton Insurance Company.
Home entered liquidation in 2003, and the New Hampshire Insurance Commissioner was appointed as Liquidator. Prior to the merger of PWIC with Seaton, the Liquidator entered into a separate commutation agreement effective March of 2015 as to all PWIC business. The instant commutation agreement (approved in December 2016), provides for the commutation of all of Home's ceded and assumed business to/from Seaton (pre-merger), as well as resolution of all of Seaton's contribution claims against Home (which related to increased payments Seaton made to insureds common to both parties as the result of Home's insolvency). A redacted copy of the commutation agreement, with economic terms removed, was filed with Home's motion for approval. In re Liquidation of The Home Insurance Co., 217-2003-EQ-00106 (N.H. Sup. Ct. Dec. 12, 2016) (order approving commutation); Motion for Approval (Oct. 18, 2016).
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