August 09, 2023
Cameron Mutual Insurance Company and Cameron National Insurance Company put into rehabilitation
A judge recently placed a Midwest regional insurance carrier and its wholly-owned subsidiary into rehabilitation. The Missouri Department of Commerce and Insurance ("DCI") Director, Chlora Lindley-Myers, has been named rehabilitator of Cameron Mutual Insurance Company ("Cameron Mutual") and Cameron National Insurance Company ("National"), which allows the Director, as the rehabilitator, to take over operations of the company.
Cameron Mutual is licensed in Arkansas, Illinois, Iowa, Kansas, and Missouri. The company provides property and casualty insurance, and its lines of business include personal (primarily homeowners and auto coverage), commercial, and farm. National is a property and casualty insurer that is wholly owned by Cameron Mutual. National is licensed in Arkansas, Illinois, Iowa, Kansas, Missouri, and Nebraska but has no active policies.
Cameron Mutual has been experiencing a slow decline in market share, and the lines of business it writes are highly competitive. It is geographically concentrated in areas impacted repeatedly by severe storms, resulting in major losses this year. Cameron Mutual pursued initiatives to improve operations, such as affiliation agreements with other mutual insurers and refocusing on small commercial and farm business lines where it could be more competitive. After exhausting all avenues to cure its deteriorating financial condition, Cameron Mutual consented to rehabilitation for both companies.
Rehabilitation is a judicial process where a Court appoints a rehabilitator to take possession of assets and administer them under the Court's supervision. As the rehabilitator, the DCI Director assumes management of the company, attempts to correct existing problems, and develops a plan of rehabilitation or petitions the Court for liquidation.
Cameron Mutual's existing policies are not cancelled by the Order of Rehabilitation. All persons are required to fully comply with the terms of their policies, other contractual obligations with the companies, and the Order of Rehabilitation. Policyholders should continue to pay premiums to continue coverage. Policyholders should submit claims to Cameron Mutual as usual.
As of July 31, 2023, Cameron Mutual had approximately 26,215 policyholders and 1,247 open claims. Policyholders can ask questions by calling Cameron Mutual at (816) 632-6511, ext. 336 or DCI's Insurance Consumer Hotline at 800-726-7390. A list of frequently asked questions about this rehabilitation may also be found on Cameron Mutual's website, or DCI's website.
DCI is charged with protecting Missouri consumers through oversight of the insurance industry, banks, credit unions, utilities, and various professional licensees operating in the state. For more information about the department, please visit our website at dci.mo.gov.