Instructions from DFS for Resolution of Cash Consideration Disputes
On January 14, 2019, Maria T. Vullo, Superintendent of the New York State Department of Financial Services issued an Order pursuant to her Decision dated September 6, 2018, regarding the acquisition of MLMIC Insurance Company by National Indemnity Company. The Order encourages objectors and Eligible Policyholders involved in unresolved disputes regarding cash consideration held in escrow to, among other items, resolve their differences in a prompt, fair and equitable manner.
If you are an objector or Eligible Policyholder currently involved in an unresolved dispute over cash consideration you are advised to read the Order and review your obligations, available options and the future status of the cash consideration held in escrow. MLMIC will mail you a copy of the Order or you may download it here.
The Order contains important instructions and dates which include the following:
- All parties with an unresolved dispute who are currently engaged in the Company ADR Process, arbitration or litigation must inform the tribunal overseeing such dispute as to the escrow procedure in the Decision and Order.
- All objectors who filed an Unresolved Objection must inform MLMIC by February 28, 2019, whether they are participating in any method to resolve the dispute or that they are not engaging in any dispute resolution process by returning a Status Update Form to MLMIC. The Status Update Form will be mailed to objectors involved in unresolved disputes on January 24, 2019.
- All objectors who timely advise MLMIC that they are not engaging in any dispute resolution process may opt into the Company ADR Process by returning an Opt In Notice to MLMIC by March 15, 2019. As well, all corresponding Eligible Policyholders will have an opportunity to opt into the Company ADR Process by March 15, 2019. MLMIC will mail an Opt In Notice to all corresponding parties on January 24, 2019.
- MLMIC must retain the funds in escrow for Unresolved Objections only where MLMIC has received an Active Dispute Resolution Notice by May 15, 2019, stating that the parties are actively engaging in a dispute resolution process or litigation.
- MLMIC must release the escrowed funds to the Eligible Policyholder only where MLMIC does not receive an Active Dispute Resolution Notice by May 15, 2019.
If you have any questions about this information, please call our hotline at 1-888-998-7871 on weekdays from 9 a.m. to 4 p.m. Eastern time.