INSURANCE COMMISSIONER OF THE STATE OF CALIFORNIA V. SUPERIOR NATIONAL INSURANCE COMPANY AND CONSOLIDATED PROCEEDINGS

APPLICATION FOR ORDER: 1) SETTLING AND APPROVING FINAL REPORT AND ACCOUNT OF LIQUIDATOR; 2) AUTHORIZING DISBURSEMENT OF FUNDS; 3) APPROVING PAYMENT OF EXPENSES; AND 4) TERMINATING LIQUIDATION PROCEEDING AND DISCHARGING INSURANCE COMMISSIONER AS LIQUIDATOR

TENTATIVE RULING

Grant application in full, upon the filing of a declaration that the Commissioner has distributed the assets in accordance with the Court’s order and the priority scheme under Insurance Code §1033(a)

DISCUSSION

I. Background

On September 26, 2000, the Insurance Commissioner was appointed as liquidator of the Superior National Insurance Companies, including Superior Pacific (“the Insolvent Insurers”), pursuant to orders appointing the Insurance Commissioner as Liquidator and Restraining Orders. Prior to their insolvency, the Insolvent Insurers entered into a number of reinsurance agreements with v