Home Mutual Insurance Company of Binghamton, NY ("HMIC") was incorporated in New York as an advance premium cooperative fire insurance corporation on February 1, 1901, and was converted to a mutual property and casualty company on April 1, 1994. Home Mutual was a subsidiary company of the parent Home State Holdings Inc., a Delaware Corporation, as was New York Merchant Bakers ("NYMB).
In January 1996, the Home State New York Pool was formed which included NYMB and HMIC. This called for all business to be pooled and combined losses and expenses prorated as follows: NYMB (85%) and HMIC (15%). HMIC was licensed in New York and Pennsylvania and primarily wrote private passenger auto coverage and some homeowners policies. It bought reinsurance protection in the form of a quota share and excess of loss treaties.
On August 5, 1997, HMIC was deemed insolvent and placed into rehabilitation. In October 1997, the superintendent as Rehabilitator entered into an agreement with the Roberts Plan, Inc. whereby they would assume all business in effect as of October 1, 1997. HMIC issued payment of $2.6M and would receive a 5% ceding commission on all policies that renewed. On January 14, 1998, the company was placed into liquidation. (NYMB was placed into liquidation on January 26, 1998.)