NOMC issued professional liability insurance policies to certain contract physicians and other medical staff, who provided medical services to its parent company (a Michigan based medical services corporation), its subsidiaries, affiliates and employees.
Following the bankruptcy of the parent company, the sole shareholder resolved to wind-up NOMC and finalise the position in relation to insurance policies that had been issued and which effectively extended indefinitely the period during which claims could be reported or made.
KRyS Global was appointed liquidator of NOMC to identify a solution to bring closure to the indefinite policies.
After having some success in getting policyholders to terminate the policies, KRyS Global set a bar date for claims. Some of the physicians were difficult to contact, as they had retired or were deceased but KRyS Global could demonstrate to the court that significant efforts had been made to contact the parties.
Based on advice from independent actuarial professionals, KRyS Global paid the claims received and subsequently sought approval of the court to dissolve the company, on the basis that all claims received by the bar date had been addressed.
The liquidators were able to bring closure to effectively indefinite policies, pay 100% to those creditors with admitted claims, and release the remaining funds to shareholders.