The California Department of Insurance announced today that it has settled four lawsuits stemming from the failure and ultimate takeover of the Fremont Indemnity Company, a former workers' comp insurer. As a result of the settlements, the state expects the Conservation and Liquidation Office to receive an additional $37.3 million by the end of the year that will help pay down the estate's liabilities.

Fremont was one of the largest insolvencies to occur during the workers' comp crisis that saw over two-dozen carriers go under. The estate was taken over in 2003 at a time when it was writing $800 million in premiums. Following its takeover by the state, the Department began filing a series of lawsuits to either protect the seized assets or to recover additional funds. Those cases are now settled.

The bulk of the additional funds will come from Fremont General bankruptcy estate and should result in the recovery and distribution of $27 million by the end of the year. The rest of the funds will come from the Fremont Restructuring Corp, Fremont Life Insurance Company and the sale of artwork that was owned by Fremont.

Look for additional coverage in the next premium edition of Workers' Comp Executive.

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