11/10/2008 – BANKRUPTCY / FILING CLAIM / INSURANCE REGULATORS
Brooke Corporation and Brooke Capital Corporation are currently the subject of Chapter 11 bankruptcy petitions being jointly administered under case number 08-22786 in the United States Bankruptcy Court for the District of Kansas. For this reason, virtually all staff has been let go and there is no one available to assist you at the National Office, Franchisee Support Center, or National Service Unit. If you need assistance with your policy, you must contact your local Brooke agent for service. If your local agent’s office is no longer open, you will need to contact your insurance carrier directly.
If you believe you have monies owed to you by either of the above Brooke entities, you may make a claim by completing a Proof of Claim (form B10) and mailing it directly to the Bankruptcy Court. Be sure to reference case number 08-22786. You may also obtain additional general information on bankruptcy at the U.S. Bankruptcy Court District of Kansas website: www.ksb.uscourts.gov. There is also a link to the Brooke Corp hearing calendars on that site. Simply click ‘Brooke Crop Bankruptcy’ on the left side of the screen, or click HERE.
For information from each of the state insurance regulators that we have been in communication with and how to reach their consumer affairs department for additional assistance, select the appropriate state below.
- 10/31/08 News Release
- Notice to All Companies
- Notice to Brooke Franchisees/Former Brooke Franchisees re: Document Preservation
11/19/2008 - FRANCHISE TERMINATIONS
**This notice is to all Brooke agents that had not been terminated, or otherwise released, from their Franchise Agreement as of October 28, 2008**
On November 17, 2008 the Bankruptcy Court for the District of Kansas entered an order rejecting as of October 28, 2008 (the bankruptcy petition date) all Franchise Agreements to which the Debtors (Brooke Corporation, Brooke Capital Corporation and Brooke Investments, Inc.) were parties. Click HERE for copy of the Order.
Release Requests: At this time, individual release letters are not being provided. Franchisees that had not previously received a letter of release will need to utilize the court order (provided above) rejecting all Franchise Agreements.
11/20/2008 - ERRORS & OMISSIONS COVERAGE
**UPDATED notice to Brooke agents that had not been terminated, or otherwise released, from their Franchise Agreement as of October 28, 2008**
Please be advised that counsel for the Trustee of Brooke Corporation, Brooke Capital Corporation and Brooke Investments, Inc. has been advised by Larry A. Hoellwarth (Counsel for Those Certain Underwriters subscribing to Policy Certificate Number PDB0327) that the Underwriter's "reject" the position taken by the Trustee that the "Brooke Franchisees' current E & O insurance is retroactively cancelled as of October 28."
Moreover, Mr. Hoellwarth has stated the following:
"That email was sent without Underwriters' knowledge or consent, and Underwriters reject the "position" taken by the Trustee in that email. The Underwriters issued the Notice of Cancellation stating that Policy Certificate No. PDB0327 remains in full force and effect providing coverage to the eligible Franchisees per its terms and conditions, unchanged, until 12:01 a.m. on December 1, 2008, the effective date of cancellation. The Underwriters stand behind that Notice of Cancellation. Notwithstanding the Trustee's purported "position," and notwithstanding the purported "releases", Those Underwriters will honor their commitment, and will continue to provide coverage for the eligible independent Franchisees, for claims made until the 12:01 a.m. December 1, 2008 Cancellation Date, consistent with the Policy terms and conditions."
In regard to claim reporting, please be advised that from this point forward, all Errors or Omission claims made against your agencies need to be forwarded to the following individual:
Adam Bunge
phone: 312-431-3627(this is a corrected phone number from the previous communication)
Mr. Bunge has been hired by the current E&O carrier to investigate all of the claims reported under this policy. If you are aware of any claims that may be made against your agency, you should make every effort to report the claim prior to the policy cancellation date, 12-01-2008.
To obtain a copy of the Brooke E&O policy: Login to BIS (www.brookebis.com) and navigate to the E&O Deductible Fund tab. This tab is found in the Professional Consultations link, from the Brooke menu. After navigating to the E&O Deductible Fund tab, select the folder titled ‘EO policy’ and then select the ‘proof of prior coverage’ document.
11/20/2008 - NOVEMBER SETTLEMENT
This notice is to inform you that the November settlement will be delayed. We are processing incoming commissions and keeping track of them daily. However, Brooke does not have staff sufficient to get these done timely. Furthermore Brooke has a number of legal issues affiliated with the current Chapter 11 bankruptcy proceedings. More information should be available soon and we will inform you of the status of the settlement in the near future.
Any future updates will be posted on www.brookeagent.com and sent via email from “Communications”.
11/26/2008 – NOTICE TO LANDLORDS / RECORDS RETENTION
On November 26, 2008, the Bankruptcy Court for the District of Kansas entered an order rejecting as of November 3, 2008 certain unexpired nonresidential real property leases, approving abandonment of certain personal property to landlords, and compelling landlords to deliver records and electronically stored information to the Trustee. Click HERE for a copy of the Order.
Additionally, on December 3, 2008, a notice was issued that the records and electronically stored information be shipped, postage or shipping costs prepaid, to the address shown below. Click HERE for a copy of this notice. It is the Trustee’s position that shipping the records and electronically stored information to this address satisfies “the landlord’s” obligation.
Albert Riederer, Trustee
c/o ABC Business Records Center
3244 Main Street
Kansas City, MO 64111
(816-753-0123)