The liquidation estate of Fremont Indemnity Co. should receive up to $37.3 million after California insurance regulators settled four suits stemming from its investigation into the 2003 failure of the national workers’ compensation insurer.

Steve Poizner

Fremont was one of dozens of workers’ compensation insurance companies that failed during the workers’ compensation crisis of 1999 to 2003, and was one of the largest California-based workers’ compensation insurers, writing more than $800 million in premiums in its final year of full operations, according to a statement from California Insurance Commissioner Steve Poizner.

After Fremont, based in Glendale, Calif., was placed into liquidation in 2003, the commissioner’s conservation and liquidation office conducted an investigation of the company’s operations and management. That investigation eventually resulted in four lawsuits being filed on behalf of the Fremont liquidation estate. The purpose of all of these cases was to recover money for the benefit of policyholders, injured worker claimants and other creditors of Fremont.

“The insurance commissioner is legally tasked with representing the policyholders and other creditors of the now-defunct insurance company,” Poizner said. “I am very pleased to have obtained this significant recovery – worth tens of millions of dollars – for Fremont’s policyholders, injured worker claimants and creditors, particularly from a bankrupt enterprise like Fremont General.”