For Immediate Release: February 8, 2013
$2.9 Million to be Returned to Former Phoenix Fund Members
RALEIGH -- Insurance Commissioner Wayne Goodwin today announced the distribution of more than $2.9 million to 643 former members of the Phoenix Fund, Inc.
The Phoenix Fund was a self-insured group workers' compensation fund whose members agreed to pool their workers’ compensation liabilities rather than seek coverage in the private insurance market. Self-insured group workers’ compensation funds are licensed and regulated by the Department of Insurance in North Carolina.
The Phoenix Fund was ordered into rehabilitation in 2006 after the Department of Insurance uncovered a scheme perpetrated against the fund by its purported reinsurance broker that left it without reinsurance. In total, the fund was defrauded in the amount of $19,699,293. The department has been successful in recovering $17,992,899, allowing the fund to pay its obligations and return money to its former members.
In August 2009, the Department of Insurance returned more than $6 million to employers who were members at the time the fund was ordered into rehabilitation. In December 2012, the Department of Insurance obtained court approval to close the estate and make a second and final distribution to participating members totaling $2,936,797.
"I know the entry into rehabilitation was a very stressful and trying time for employers who where members of this fund,” said Goodwin. “Throughout this years-long process, the Department of Insurance has been committed to helping return the money to which these employers are entitled."
For additional information about the distribution, please call 919-821-2626 or email email@example.com.