Cornerstone National Insurance Company Enters Receivership: Key Insights

Cornerstone National Insurance Company, a property and casualty insurer based in Missouri, has recently been placed into receivership by the Circuit Court of Cole County. This significant action comes as a response to the company’s ongoing financial difficulties.

The Missouri Department of Commerce and Insurance (DCI) has appointed Director Angela L. Nelson as the receiver for Cornerstone. This designation empowers her to take control of the company’s operations, overseeing its transition through this challenging period.

Effective from January 1, 2026, to February 28, 2026, the court has placed Cornerstone into rehabilitation, followed by a liquidation phase starting March 1, 2026. All policies issued by Cornerstone will terminate by no later than March 31, 2026, marking a significant change for its policyholders.

Cornerstone primarily offers homeowners, auto, and liability insurance, with a substantial portion of its 2,700 policies distributed across Oklahoma and Illinois. Unfortunately, the company has faced persistent and substantial financial losses leading up to this receivership. According to DCI, Cornerstone’s surplus plummeted from $1,142,458 on December 31, 2024, to a negative $378,131 by September 30, 2025.

In light of these financial challenges, insurance regulators in at least seven other states have taken measures to prevent Cornerstone from issuing new insurance policies within their jurisdictions. This reflects a broader concern regarding the company’s stability and ability to fulfill its obligations to policyholders.

Receivership is a judicial process wherein a court appoints a receiver to manage the assets of an insurer under judicial supervision. This process is designed to protect the interests of policyholders and creditors. The liquidation of Cornerstone will enable the receiver to organize the company’s assets and pay creditors according to a statutory plan, pending court approval.

It is important to note that Cornerstone’s existing policies will remain active until March 1, 2026, unless they expire by their terms or are canceled prior to that date. All active policies as of March 1, 2026, will be terminated no later than March 31, 2026, which may leave many policyholders seeking alternative insurance solutions.

Source: Missouri DCI

Topics
Carriers

Cornerstone National Insurance Company, a property and casualty insurer based in Missouri, has recently been placed into receivership by the Circuit Court of Cole County. This significant action comes as a response to the company’s ongoing financial difficulties.

The Missouri Department of Commerce and Insurance (DCI) has appointed Director Angela L. Nelson as the receiver for Cornerstone. This designation empowers her to take control of the company’s operations, overseeing its transition through this challenging period.

Effective from January 1, 2026, to February 28, 2026, the court has placed Cornerstone into rehabilitation, followed by a liquidation phase starting March 1, 2026. All policies issued by Cornerstone will terminate by no later than March 31, 2026, marking a significant change for its policyholders.

Cornerstone primarily offers homeowners, auto, and liability insurance, with a substantial portion of its 2,700 policies distributed across Oklahoma and Illinois. Unfortunately, the company has faced persistent and substantial financial losses leading up to this receivership. According to DCI, Cornerstone’s surplus plummeted from $1,142,458 on December 31, 2024, to a negative $378,131 by September 30, 2025.

In light of these financial challenges, insurance regulators in at least seven other states have taken measures to prevent Cornerstone from issuing new insurance policies within their jurisdictions. This reflects a broader concern regarding the company’s stability and ability to fulfill its obligations to policyholders.

Receivership is a judicial process wherein a court appoints a receiver to manage the assets of an insurer under judicial supervision. This process is designed to protect the interests of policyholders and creditors. The liquidation of Cornerstone will enable the receiver to organize the company’s assets and pay creditors according to a statutory plan, pending court approval.

It is important to note that Cornerstone’s existing policies will remain active until March 1, 2026, unless they expire by their terms or are canceled prior to that date. All active policies as of March 1, 2026, will be terminated no later than March 31, 2026, which may leave many policyholders seeking alternative insurance solutions.

Source: Missouri DCI

Topics
Carriers