Rehabilitation Ordered for Two Illinois Group Workers Compensation Self-Insurance Pools

The Director had previously ordered both companies to assess their members an amount sufficient to cure the deficiencies in their financial conditions. When neither was able to recover adequate funds, the Director moved to place them into rehabilitation to conserve their assets for the protection of claimants and creditors. Both Rehabilitation Orders contain injunctions prohibiting suits against the companies outside of the rehabilitation proceedings.

BYRMA was organized in May 1993 pursuant to the Illinois Workers Compensation Act for the purpose of providing group self-insurance for workers compensation loss exposures for selected members of the Back of the Yards Neighborhood Council, Inc.

As of December 31, 1998, the company's financial statements reflect approximately $3.6 million in direct premium. BYRMA has been in conservation since April 21, 1999.

Illinois Electrical Employers Workers Compensation Association, Inc. was organized under the Illinois' Workers Compensation Act in January 1995 to provide group self-insurance for workers compensation loss exposures for selected members of the Professional Electrical Contractors Association of Chicago. The company's most recent financial statements reflect approximately $545,000 in direct premium as of August 1, 1999. The Rehabilitation Order grants the Director additional statutory authority to attempt to correct Illinois Electrical Employers Workers Compensation Association, Inc.'s financial condition.

The rehabilitation proceedings are being handled on behalf of the Director of Insurance by the Office of the Special Deputy Receiver, 222 Merchandise Mart Plaza, Suite 1450, Chicago, Illinois 60654; (312) 836-9500.