Kemper Insurance Company Contingent Claims Filing Deadline Is Fast Approaching: What You Need To Know - M&E Insurance Coverage Alert

Lumbermens Mutual Group, formerly known as Kemper Insurance Company (or just as Kemper), is comprised of Lumbermens Mutual Casualty Company, American Motorists Insurance Company, and American Manufacturers Mutual Insurance Company. These Kemper Entities sold property and casualty insurance policies throughout the 1980s and into the 1990s, covering (among other things) liabilities arising from long-tail, toxic tort claims such as asbestos and environmental exposures. They are now in insolvency proceedings and important deadlines for perfecting claims against them are fast approaching.

On May 8, 2013, the Circuit Court of Cook County, Illinois entered Orders of Liquidation, finding each Kemper Entity insolvent. The Court later entered an order establishing November 10, 2014 as the deadline for filing proofs of claim (“POC”) for losses associated with insurance policies issued by the Kemper Entities. A claimant’s POC had to relate either to a known loss with a known value, or to a contingent claim for which the claimant knew there was a loss but the value of the lossKemper Insurance Company Contingent Claims  was unknown. Known losses are classified as Class D claims and will be paid at the fourth priority level when the Kemper Entities’ assets are distributed.

With respect to contingent claims, the Court established November 10, 2015 as the deadline for filing proof that covered claims against the insured now have been paid in full by it. For insureds who pay their claims in full and provide proof of payment by November 10, 2015, their claims against the Kemper Entities will be classified as Class D claims and be paid at the fourth priority level. Those insureds unable to pay their contingent claims in full by the deadline may instead file an estimate of the value of their claims by November 10, 2015. These estimated claims will be classified as Class E claims and be paid at the fifth priority level.

Written by:

McCarter & English, LLP
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