06/01/2015 - Notice of Lodgment In Support of Application for Order Approving Liquidator's Final Reporting and Accounting and Final Distribution of Assets of the Estate of Frontier Pacific Insurance Company Frontier Pacific ("FPIC") is a California-domiciled wholly owned subsidiary of the New York-based parent company, Frontier Insurance Company ("FIC").
In August 2001, FIC voluntarily placed itself in rehabilitation with the New York Department of Insurance.
This mainly occurs during voluntary liquidations of solvent corporations.
331, a liquidating distribution is considered to be full payment in exchange for the shareholder’s stock, rather than a dividend distribution, to the extent of the corporation’s earnings and profits (E&P).
Proceeds from cash liquidation distributions are reported on Form 1099-DIV.
However, only the amount of distribution that is in excess of the recipient's original investment is taxable.
If the corporation distributes its assets for later sale by the shareholders, the assets generally “come out” of the corporation with a basis equal to FMV (and with the related recognition of gain or loss under Sec.
The CLO, on behalf of the Insurance Commissioner, rehabilitates and/or liquidates, under Court supervision, troubled insurance enterprises domiciled in the State of California.The Liquidation Order was signed on November 30, 2001, requiring policy cancellations to be mailed for FPIC policies in effect as of December 30, 2001.On July 23, 2012, the San Diego Superior Court issued an order approving the estate's application for an interim distribution (pro-rata 55.5%) to approved claimants.The shareholders generally recognize gain (or loss) in an amount equal to the difference between the fair market value (FMV) of the assets received (whether they are cash, other property, or both) and the adjusted basis of the stock surrendered.If the stock is a capital asset in the shareholder’s hands, the transaction qualifies for capital gain or loss treatment.
The Conservation and Liquidation Office (CLO) recognizes the rights of claimants to assign their approved claims.