62-CV-11-9400 Filed in Second Judicial District Court9/27/2013 2:55:04 PM
Ramsey County Civil, MN
State of Minnesota District Court
County of Ramsey Second Judicial District
62-CV-11-9400 In Re: The Matter of the Liquidation of ·Minnesota Surety and Trust Company
QUARTERLY REPORT MINN. STAT.§ 60B.25
REPORT ON PROGRESS OF LIQUIDATION PROCEEDINGS
October 1, 2013
NOW COMES Mike Rothman, Commissioner 0f Conunerce of the State of Mitmesota, in his capacity as the statutory and court-appointed liquidator of Minnesota Surety and Trust Company, ("MSTC") and for his summary of progress and current status of the MSTC liquidation proceedings, states as follows:
1. The court placed MSTC in liquidation oriN ovember 22, 2011. 2. The court appointed the Commissioner of the Minnesota Department of Commerce
(hereinafter "Commerce") as liquidator ofMSTC. 3. MSTC, a Minnesota insurance company, was also licensed as a trust company and
actively administered a number of trusts.
REPORT I. Financial Statements
4. The Liquidator attaches hereto as Exhibit A the financial statement for MTSC as of June 30,2013.
II. Notice and Claims
5. The Liquidator is in the process of evaluating completed proof-of-claim forms submitted prior to the November 1, 2012 claims filing deadline.
62-CV-11 -9400
6. The Liquidator is reviewing information submitted by some of the f01mer agents ·of MSTC for the release of the agent's build-up-fund accounts.
Respectfully submitted,
MIKE ROTHMAN Commissioner Minnesota Department of Commerce
By his Special Deputy Liquidator
Rick '/lu~
Theisen
Date
62-CV-11-9400
Property and Casualty Companies
QUARTERLY STATEMENT AS OF JUNE 30, 2013
OF THE CONDITION AND AFFAIRS OF THE
MINNESOTA SURETY AND TRUST COMPANY NAIC Group Code NAIC Co. Code 30996 Employe~s ID Number 41-0665921
Organized under the Laws of State of Domicile Minnesota
Country of domicile Unilad States
Incorporated/Organized: August 28, 1945 Commenced Business: August 28, 1945
Statutory Home Office 85 7th Place East, Suite 500, St. Paul, MN 55101-2198
Main Administrative Office 65 7th Place East, Suite 500, St. Paul, MN 55101-2198
Mail Address P.O. Box 133, Farmington, CT 06034
Primary Location of Books and Records 85 7th Place East Suite 500, St. Paul, MN 55101-2198
Internet Web Site Address htlp://mn.aov/commarcwtopics/enlorcement/liguidaUonsJsp
Statutory Statement Contact Rick Theisen (651) 297-4297
OFFICERS (None-Ccmpany in Liquidation)
OTHER OFFICERS None- Company In Liquidation)
DIRECTORS DR TRUSTEES None- Company In Liquidation)
State of Minnesota County of Ramsey } ss T h.a olficcus ol trks reportng enlily being dUy swotn, each depose snd 811( lhal they we I he describod offtce~r Cll said repOOino enl~y , 81\d lhM on the l&fl•)rtlng Pf!kJd sla~ above, ell ol the herell'l doscribed assets were llle ab901ulo proper1y or lhe or the said reporYng enUty, fn:le and dear rrom 30Y liens orclatmSJitlsreon, e~ceplos herein GtatOO, Wid \hal this Blalemon~ to~elhet Mill reloled exhlbils, schedules ood explanal.lonalhtveln OCinlaiood, ann&led or ref&ITed lo, Is: e run 91'KJ ~ue sta:l.ement or ell the assets and liabillles a1d ol the condition S1d affara ollhe sa'~ roporling entity as or the ropo~tno period &1atod aboYe, arrd of Ksiooome 8f1d dod1Jc4iorrs lh01e nom lor lhe period ondud, an<l ha•e been oo:nplelod ~ 8CCOidancev.1lh lhe NIIIC Ann~ Statement IOfdN<::Oon& a'ld Ac:c;ountJn.] Pr3Gl.K:es lWld Ptocedure& manual excep( 60 I he extenllhat:: (I) dole I aN m.ay d'ltw; or, (1) tnal ct~te rulos or regulallons r~tJro dUferences In !1~41' ·1 .Htt~o~l H> ··r,o.t fl'lP~,;~~a r·u~ ·Y'I1\ilt,;.. I'Yort-""Jtntf tkJ~•··.It'lnf r, m "·fl ~ .• ,~tnl?~ I ..f I~'~'• ··1·1 Furlhe r more,lheseopoollhis&llesta~onbylhe
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• 0' "' • ~ "'"''"'' • .,,_ ~- '""' ' • .,,, o Ok~ .0~~
-9kzn,k .l.~ Zo / 3 -t0~Rick:-'::::T~"""7c:f-'--n --'--'1'-- """'""-----Chief Examiner, Special Deputy Liquidator
62-CV-11-9400
STATEMENT AS OF JUNE 30, 2013 OF THE MINNESOTA SURETY & TRUST COMPANY
ASSETS CUtiC•tl Year
NeiAdmiHed Assets December 31
(Column 1 Prior Yoar Nel Nonadmitted minus Admitted
~=-------------------------------------------~·As~••~ls~--c~--~As~s~•~~--- I ~C~o~lu~m~n~2l~~As~se~l~•~t I iJv.,,ll! 988,4~ I 988.441 • _!, 107.197 2:'\ol\h·
2.1 Pro~••uo\J ~10~1<> ~.7 rollllll•~• SIP1:H
31. •lu-ln"'q, "'' •l!lll<'~nt Jtlil~tl..n --'J'ir'iu.:t U•om 4•ollnOJ -
4 ~u.:.to$:e ~ J.l§i ..:.lea~ ~#Jiiii< ~T~l. _:__:To:~----~:·-- ·-·_ •I ~'!'~' ~d_I9 1 I~•~OU:il<lo ~llnr.o~ojo~;j •·~u•1111'-'!.JI ~ li'•Q(Wllos rokf lor silii (lo!J!i S ol1(;<jlll\nn"'_.j
s ~·~·.J1~ ~M~iiOE -PWfff'~"iiij.,.,.i!"''t!<iirJ<i.iiOi ~ -P';iii:j' 6 Col\lloc1 1<101" 70·.iMIIUS ------ •. - ---······--6Uuinrlli~rJ--rt'-'t"- ---- --·· · • 9 hutlliv· · 1 ~~ lfll:ufiiiQ-\ ---
10 's'roum • .,,,.,11, nwhiiii• H!"col,r~'!'!. ,!!UiJS:J~"'!i,i;,'hl 11 ~~~~ \\IITI m IQ!_ln~_!lol ~5SQ~ _ •• . ••
12 l\U11~1I~~ ~ 1 ~''!'.'";'1!~1~.~ t'!:!' I jl1r. ,ql,r !.."\!' II} 13 fore ~tlal•l• '<>lt• t~-> v<Xl cll(lor I " ow..II0•4 o"IY) 14 fnvrstmen•l•lr(ulf!l4iuo-a~l1 i!C"':IU9d. - · --- ___ HI~
15 Po om~"'' 111:<1 '""'~ill f"' t:o 1\!J.~:X~'«r•d ~•C!'Ir • v•· ,. JNIIO~ ~ 1n -~~ q/ •0Jvt10.!• __ _ --~
;Ill<!
1& 1 0~/!IW<l l.l''lllf' •"' ao•mr. holY!(&~ ~nd lllal.JIImeJI I! lloo>nrli>,H&fQIIuJ nr.f !101 yo/ d••u {"W'IJ~ r j__ "'l_:!!OU b'!!_unbol!<Jd ~'"""'"i •SL
16 fl.um~ur•me< •a·t~MUi~ffilif.ii.~"' .t6.Zfrm!B ~IJ'I:v,; ~"~'ti, ,~~<nmpo1uioL_ lfll/~1~11 f'fl~~~\'ll fl(Q/1\IUif•'.
17'1\m;~,;;~;;,~mlj!li't.jlo,~fiiiil" - . --=-_:_-=-. __ 18 1 r.:r. lntilt;;Ji,;r~ an~·lo qn o ~~to'i7iatol.>; rero,ll.1lilJl1l.lltU onlilror ~iun•oo 18 2 f{~·~~i;;fij, ~ ·- _---- - - ...::._---_ -=-=--=-= -- !li&®
19 Glnm~·~ rutd~ ln'o !1bl<l Qf on dOpa!l•l 20jioct'.,t Med.iiii;,,r.i'.tiV!'i"JII~Onl mso~a<e_ ·- ·--· _.::. = 21 .!2.'!!!"'0 ottJ uo~·P"~.Iudiu l~o'lV<llY~~·~~ ___ ·-
=---=--_
22 Ndl G.:JjuUntll'llltl o>><llli eN ltnl "' ' dvo ro tar ton fllcltil.'oJO loti" 23 R<luJ•tul e< lllii;l ll~l'ti!ll . j,., .'tiJII ·al\0 rll!!!~------ ---- -2~f!th\tu•atillJ•rdotiKirnmo~tli~",)N~-===·==-----2SAclll'~yn,m.,~~o~,!!';l•.~as~•" _ ·----- _ ··- - igg
Total otse~ ooe~ldli>il Sol~nt DI A.xoonlr:.. ~· ~~~~hr.! o\l)oo•••' 1d f'Jni9~1•Jd ~;;~U 26 Aocn_!lr.lt; (llllil 1110 llflo1b\ __ ·- _ . . .. .. _ .... 102.950 1.306 686, q63.681 27 f•~lfllll!lnre ko:n~Jm; ~fe!!ll\~ ~ce~u111~ 'l'ld l'rol!l<taul ~' o\rr.nu~ •• _ 28 T ot~ l (Lro(! 2B llll~ l in~ m 1;409.636 \02 9..'ll 1.306,till6 1.353.681
------------
__ @ 0 2.493 100
1oli ---2.693
Page 2
62-CV-11-9400
STATEMENT AS OF JUNE 30, 2013 OF THE MINNESOTA SURETY & ffiUST COMPANY
l!J\Illl lrltS, SURPlUS AI'ID OTIIER l'UNIJS I ~,;wmtt 1. ~;n,
Slalllfi&IIIOilt py.,v ..
1.63(
1~150 __ 112.til!o
5.0~ --~
3017! ~ "w r';! l
19 • ~rr!:.
'l~~~d6d.vKIII'l~~----..!.!_ 1~!oct.holden;
1791111 1H IOI
17_!!~s~stnftllsb&ssebsnd~~~dueb~~~ --~-·--18 1
19~
'20 01)'iva!NM
21!:1'•,
, ~~~o:Mrf"t~ i:; ~,,t..,!I L;;._'!~~:..' ------21•·
28 1~bi..U ... ,tlft.i:'t~·llt'''·'tt!k'~~Lil_. .. :o:;'':.:··~··'----:!1) ~"'"'"tft:n ~ - -
---------~ -------
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JT Supb.J&uregnpGI~~flaid•sj'l..ine29blY!•~.IHslntlS)P.I(Jt.4 lll'le3ll
62-CV-11-9400
STATEMENT AS OF JUNE 10, 1.01;'1. OF WE MINNESOTA SURETY Ko TRUST COMPANY
STATEMENT OF INCOM PriOf rear
CurMYJl Yoar Prior Year Endod ~ loO.te ~~
UNDER~ITING INCOME
i Lc~ loo .. uroo (Cl:lltll\1 OO:)(!mt ya31 $ l<\81' '1 Duet!
12 .\!lsvmed 2 ~ CJded 2 .. Hoi
31)0 JlOt$B~\pP4rrseiil'lctJIIGd :100 4 O'llor undeM'rtUno e;p•flSII!s lflt\Jrred 52,309 235764 -4700'l2
S Aogregate ~~~~~nt Jol underwri!ing ~liona 6 Total underwri:"g ded~ {LIIlC$ 2 ~hrough 5) 52,309 23551)3 4t7o,::m 1 f*4irom',ll oi~K«f!ckld ~~ 8 N~l undorv.Mng QUI {kml (lm f mlnu& Lh 0 • linG 7) ~ { .. ~ ~~- l it.: _•!11
IN'IEST!BIT IHCOIIE _!.)_:~ '~ :Alii
lOCi TI!'· iffi.f
62-CV-11-9400
STATEMENT AS OF JUNE 30,2013 OF THE MINNESOTA SURETY & TRUST COMPANY
CASH FLOW 3
PrlorYeat Cumml Year Pnor Year 10 Ended
10 Oate OaJs De<:omber 31
1 !'!!mlu_"'Scoll•."~-~~~~lnsur•nr.e 0 0 ' !_&llln •_9~M_nl~ aa:w
0
n:OSO - ZFo4 0 n! 1i! !"710 1 ~~·.n£lli~tll..li_·.t.~~,.
13 0116 97,J8D ~ !!>'_[(II.,. It l) raw ~- lliJnoft (161) {9611 Md los,s related u~tlllllt6
0 •.,~ 1(.~""'-'"' ~prald ~n.111 Sl'l)la~ 1\1'~~ Plllll!(l~a f.dl ~_tr:<ll:lt!ll u-,-t!lflhl ~-~ 6Jd_56 MD 541 J L2:t~~r_~:u;•t~_:t eM \\1U&In:t~ ktr lliJI ·1r.kln~
al~oaldloooic'•llo>i~f! --~---~----
~ ~u~;::~_ '"~ "'"'''llfl 1rtr.mle 18'"-' ll'lld 1~~·,fii0i~Oi-C. . .lax on ;;;;;,-llal _ _ _ Q'OII~ i '·R')
10 tvf!tl\!J16.5~•R~G1 _ 11 ... ...,>!ol•"'' "l""• I!IM (. lne 4 !Tin us una1U) .. I ~ 1'"-' U>lic.OI IJ11'id]!ril_i_ob_S<lld m;,lu~_d_orr_fJ'~j
Ill !lui,.,.. !2.'1SW<Io$ i?)~jriltlQ_~,-===-= --- - .. ·=--- __ Ht~!1'!!fJi'. tsOOrs · .... -- ------i~~l~~-of'"~rt1f ~ ~i£~· d~~tl~~.6f-~_tJ,~I t!f''" tt1Vdl~nanh -- ----lll l .w~' t.tvon<.:<'lll ir&·r~<ll ln•e :-,jj.;,:.~ (1 1ne•12Jc1VJ • - 120.000 251 ,liDO
1l r;o;r_!Jiil''!illlll'!' l l<:rtLJir&~"'l-lennonlyL,., __ _ 1' 1&<.•\b Ill-~ 1 J \INt~·~o 1->;m• lliR•<I •'>I,.;.;.'ICt lislY." , -,.-=,-,.,-r_.-,--9}' t ... ce~G: uu~ ~plifUf!!! ·•- __ I~ / ]i;041trll!_~!!)ll"· ll<~~·od ll}nas 1~1!_61_ - 1-----''-l---~-1----"-1
I~ II! ~1!1'! l~ !!W...'! l<)ln WtlraG!I~o.• and pronium noll!s !6 ,.;._; ol)l I"Q I~I••oWIIInlllJdnai~BII'i~l~ 1;!:1 ~line 141 120.000 .251 aon
Co<h l1 utn flnonr:rug JWI/1 ><• llolllllilll> lim.W«>
-J,98li - J:riiso 3.960 ~
64,906 \1!3.!6.'! ,_t4.1~!1
245 218 J43.i1H 3113.118
310.124 ~.'4d1 - --mm
62-CV-11-9400
STATEMENT AS OF JUNE 30,2013 OF THE MINNESOTA SURETY AND TRUST COMPANY
NOTES TO FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Accounting Practices Organization Minnesota Surety and Trust Company (the Company) was incorporated and commenced operations on August 28, 1945, under the Statutes of the State of Minnesota. The Company was a licensed property and casualty insurer under Minnesota Statutes Section 60A.06. Effective Noverr.ber 17, 2011, the Company's Minnesota Certific~te of Authority to operate as an insurer was revoked Effective November 22, 2011, the Company was ordered into liquidation.
The Company is a majority owned subsidiary of First Heartland Surety and Casualty Services Company (First Heartland). The Company was engaged in underwriting surety and bail bonds in the sates of Minnesota, North Dakota, Montana, Utah, South Dakota and Colorado. The coverage on the surety and bail bonds was marketed to customers though a network of independent insurance agents and brokers. The Company also provided trust services primarily to individuals in Minnesota.
The financial statements have been prepared in conformity with the accounting practices prescribed or permitted by the National Association of Insurance Commissioners and the Minnesota Department of Commerce.
B. Use of estimates in the Preparation of the Financial statements & Accounting Policy The Company records bail bond premiums on the net remittances method. As such, the difference between the fee, generally 10% of the bond, and the premium has not been recorded in these financial statements.
Premiums written are recorded on an annual basis to match the billing to the policyholder. Premiums on other than bail bonds are earned on a pro rata basis over the life of the insurance policy. Audit adjustments to premiums are recognized in the period that the adjustment becomes known. Unearned premium reserves are established for the portion of premiums billed applicable to the unexpired term of the premium.
Certain costs of acquiring new business, principally commissions premium taxes and other variable policy issuance and underwriting expenses, are expensed when due.
Unpaid claim and settlement expenses are based on estimates of reported and unreported claims and related seltlement expenses. The Company does not discount the reserve liability for future policy claims settlement expenses.
Investments in fixed maturity bonds are recorded at amortized cost under the valuation standards of the National Association of Insurance Commissioners. No provision is made for temporary declines in market values below amortized cost as the Company generally intends to hold these investments until maturity and does not expect to realize an significant losses. If, however, a permanent impairment occurs in a security, the Company writes the security down to the new value. Short-term investments are recorded at cost, which approximates market. Investments in common and preferred stocks are carried at estimated market values based on published market quotations.
Realized gains and losses are computed based on specific identification of the cost of the securities sold Unrealized gains and losses of common and preferred stock are included in surplus.
Cash and short-term investments include demand and savings deposits at several financial institutions. At times cash on deposit may exceed federally insured limits. For purposes of the statement of cash flows, the Company considers all highly liquid investments with a maturity of one year or less, when purchased, to be cash equivalents,
6
62-CV-11-9400
STATEMENT AS OF JUNE 30, 2013 OF THE MINNESOTA SURETY AND TRUST COMPANY
NOTES TO FINANCIAL STATEMENTS 2. ACCOUNTING CHANGES AND CORRECGTIONS OF ERRORS No change.
3. BUSINESS COMBINATIONS AND GOODWILL No change.
4. DISCONTINUED OPERATIONS The Company was ordered inlo liquldallon by lt.e Slate of Minnesota on November 22, 2011
5 INVESTMENTS During the period covered by these linencial statements, the Company had no mortgag<Jioans, real estate loans, debt restructuring, reverse mortgages, loan backed securities or repurchase agreements.
6. JOINT VENTURES, PARTNERSHIPS AND LIMITED LIA81LITY COMPANIES No change.
7. INVESTMENT INCOME No change.
8 DERIVIA TlVE INSTRUMENTS No change.
9. INCOME TAXES No change.
10 INFORMATION CONCERNING PARENT, SUBSIDIARIES AND AFFILIATES First Hetirtland owns 380,099 of the 500,000 Issued end outstanding shares of Company capital common stock. First Heartland also holds surplus notes in the Company In the amount of $215,000. 1 here were no intercompany transaction In the first quarter of 2013.
11.DEBT As or March 31, 2013 the Company had the following secured and unserured notes payable: 1) Promissory note payable to Ste~Mng State Bank In the amount of $303,784
12 RETIREMENT, DEFERRED COMPENSATION AND POST RETIREMENT BENEFIT PlANS No change.
13. CAPITAL AND URPLU, DIVIDEND RETRICTION AND QUAl-REORGANIZATION No change.
14. CONTINGENCIES No change
15 LEASES The Company is not a party to any leases.
16 INFORMATION ABOUT FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK No change
17. SALE, l'RANSFER AND SERVICING OF FINANCIAL ASSETS AND EXTINGUISHMENTS OF LIABILITIES None
18. GAIN OR LOSS TO THE REPORTING ENTITY FROM UNINSURED PlANS No change
19. DIRECT PREMIUM WRITIENIPRODUCED BY MANAGING GENERAL AGENTS/ADMINISTRATORS No change '
20. FAIR VALUE MEASUREMENTS Bonds: Fair values for bonds are determined using quoted mart.et prices from an orde~y mart.et at the reporting date lor those or similar Investments.
2013Statement Value 2013 Fair Value Bonds: S98B,441 $1,060,206
61
62-CV-11-9400
STATEMENT AS OF JUNE 30,2.013 OF THE MINNESOTA SURETY AND TRUST COMPANY
NOTES TO FINANCIAL STATEMENTS 21. OTHER ITEMS No Change
22. EVENTS SUBSEQUENT No change.
23. REINSURANCE No change.
24. RETROSPECTIVELY RATED CONTRACTS No change.
25. CHANGES IN INCURRED LOSSES AND LOSS ADJUSTMENT EXPENSES No change.
26. INTERCOMPANY POOLING ARRANGEMENTS No change.
27. STRUCTURED SETILEMENTS No change.
28. HEALTH CARE RECEIVABLES No change.
29. PARTICIPATING POLICIES No change.
30. PREMIUM DEFICIENCY RESERVES No change.
31 . HIGH DEDUCTIBLE$ No change.
32. DISCOUNTING OF LIABILITIES FOR UNPAID LOSSES No change.
33., ASBESTOSIENVIRONMENTAL RESERVE No change.
34. SUBSCRIBER SAVINGS ACCOUNTS No change.
35. MULTIPLE PERIL CROP INSURANCE No change.
36. FINANCIAL GUARANTEE INSURANCE No change.
6.2
62-CV-11-9400
STA fEME NT AS Of JUNE lO, ZOIJ OF THE MINNESOTA SURETY ANO TRUST COMPANY
GENERAL INTERROGATORIES P1rt 1 ·COMMON INTERROGATORIES
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9', Hashoc.«'•ol~ltt~Mb"m~tl'IJII'n~oo.Jl Y"O G21 !IL"'dr~n-,atlR2HV-.~O'W'da,.,.nllAof~nywMtN
FIHANCL.O.l
10 I OOHfwrtp«lngenft(rf?O(Ienya'I"IO'IrtfiOJa'"anpa-ent~~•llitMisonPage2oiiN!•IIfflf(ll'l No(X)
10 2 rry.1, hdic.tkler.vemol.ml3rfll:'fNIIbie IMJ!'*vr.t illd'.ld&d in !he Pas• 211111o111t
62-CV-11-9400
STATEMENT AS OF JUNE 30, 2013 OF THE MINNESOTA SURETY AND TRUST COMPANY
GENERAL INTERROGATORIES INVESTMENT
Were any of lhe stocks, bonds, or other assets of the reporting entity loaned, placed under option agreement, or otherwise 11 .1 made available
for use by another person? (Exclude securities under securities lending agreements.) Yes() No{X) 11.2 If yes, give lull and complete information relating thereto:
12 Amount of real estate and mortgages held In other Invested assets In Schedule BA: $0
14.1 Does the reporting entity have any Investments In parent. subsidiaries and affiliates? Yes() No(X)
14.2 If yes please complete the following :
14.21 Bonds
14.22 Preferred Stock
14.23 Common Stock
14.24 Short-Term Investments
14.25 Mortgage Loans on Real Estate
14.26 All Other
14.27 Total Investment In Parent, Subsidiaries and Affiliates
14.28 Total Investment In Parent included In Lines 14 .21 to 14.26 above
15.1 Has the reporting entity entered into any hedging transactions reported on Schedule DB? Yes() Nu(X)
15.2 If yes, has a comprehensive description of the hedging program been made available to the domiciliary state? Yes() No()
Excluding Items In Schedule E- Part 3- Special Deposits, real estate, mortgage loans and investments held physically In 16 the reporting
entity's offices, vaults or safety deposit boxes, were all stocks, bonds and other securities, owned throughout the current year held pursuant to a custodial agreement with a qualified bank or trust company in accordance with Section 1.111- General Examination Considerations, F.
Outsourcing of Critical Functions, Custodial or Safekeeping Agreements of the NAIC Financial Condition Examiners Hand boo~ Yes (X) No()
For all agreement thai comply with the requirements of the NAIC Financial Condition Examiners Handbook, complete the 16.1 following:
Name of Custodian(s) Custodian Address
Wells Fargo Bank NA
US BankNA
For all agreement that do not comply with the requirements of the NAIC Financial Condition Examiners Handbook, 16.2 complete the following:
Name of Custodian(s) Custodian Address
16.3 Has there been any changes, Including name changes, in the custodian(s) identified in 16.1 during the current quarter? Yes() No{X)
16.4 If yes, give full and complete Information relating thereto:
Identify all investment advisors, broker/dealers or individuals acting on behalf of brckerldealers that have access to the 16.5 Investment accounts,
handle securities and have authority to make investments on behalf of the reporting entity:
17.1 Have all the filing requirements of the Purposes and Procedures Manual or the NAIC Securities Valuation Oftice been followed Yes (X) No()
17.2 If no, list exceptions:
7.1
62-CV-11-9400
STATEMENT AS OF JUNE 30,2013 OF THE MINNESOTA SURETY AND TRUST COMPANY
GENERAL INTERROGATORIES (Responses 10 these Interrogatories should be based on changes that have occurred since prior year end llnlcss otherwise note.)
Part 2 PROPERTY & CASUALTY INTERROGATORIES
1. lllh& reporting entity is a member ole pooling arrangement, did lhe agreomonl or U1e reporting e11~ty's participolioll chang Yes (I NoO NA(X)
I! yes, allach an oxplanallon.
HBs the reporting entity reinsured any risk w~h any other mportlng Bntity and agreed to release svch entity from liabil~y. In whole or in part
from any loss thai may occur on tho risk, or portion thereof, reinsured? Yes ( ) No (X)
tryes. attach an ••pl•natinn.
3.1 Haw Bny or the reporting entity's prtmary relnsuraru:e oontrads boon canceled? Yo•() No (X)
3 2 tr yes, givo ful and compleJo inlonmation lherelo
4.1 Are any or tholiabiliios lor unpaid losses and loss adjustment expenses other than certain worl<er.;' oompensalion tabular reseMls
(soo Annuel Slalemenllnstruotions pertaining lo dlsdosum of discounUng lor definition ol'tabular rnserves,') discounted at a rate
or interest greater lhan zorn? Yoe (I No(X)
4 2 II yes complete lhe following schedule:
Total During Period
~usineJ 4 6
2 J Disoounl Discount taken
8 10 11 Maxinum 3 Unpaid
Line of fnlors&t lliuount Rale Losses L.p~~E_I IBNR I TD:AL Unpaid Losses I Unp~ ~E: I IBNR I TOTAL
Operaling Percenleges
5 1 A&H loss percent %
52 ASH cosl conlainmenl percent %
53 A&H expense percanl excluding oosl conter1menl expense %
6.1 Do you 8d as a custodian lor hoallh sll'lfngs accounts? Yes() No (X l 6.211 yes, please provide lh& amount of CIJstodiaf funds held as or lhe reportlrl!J dale $
6.3 Do you act as an admlnislralor ror heallh savings accounts? Yos() No (X)
6.4 rr yes, please prnltde the balanoo or"'" funds administered "ollhe roporting dale $
7.2
62-CV-11-9400
STATEMENT AS OF JUNE 30, 2013 OF THE MINNESOTA SURETY AND TRUST COMPANY
SCHEDULE F-CEDED REINSURANCE
NONE SCHEDULE T • EXHIBIT OF PREMIUMS WRITTEN
NONE P/\RT 1 · LOSS EXPERIENCE
NONE
NONE PART· 3 LOSS AND LOSS ADJ USTMENT CXPtNSCRESERVCES SCHEDULE
NONE SCHEULE A- VERi fiCATION
NONE SCHEDULE B- VERIFICATION
NONE SCHEDULE BA- VERIFICAQTION
NONE
9, 10, 13, 14, S101
62-CV-11-9400
STATEMENT AS OF JUNE 30, 2013 OF THE MINNESOTA SURETY AND TRUST COMPANY
SCHEDULE 0 ·VERI FICATION 1 PliorYear
Bonds and Stocks Year to Date Endad December 31
1~ ~oo:_kl!d~•!!td_ ~"!!"2 ':!1~ ~r~'!d! ·~a_tt~(~ !A?·~·~~~~~~ a!•'!. ~I'!"'. _________ • ____ • __ . ____ 1~oz.~g~ _____ 1.~~~~~-
2~ c:_o~O!~njs_a';,d ffl ~~~~ • • • •" ______ . _. _ . . __ .. • . • • ... ... • . • • . • " . • ... • •. _ .. . 3 Acaual or discount --------------~---- ----~------ -----M·------ --·--
5;. !.ol!l e.·~~'!) 2" ~~~- '!"'.11- - - - - - - - - - - - - - - - - • - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ~·0!'8 S;. ~'!.~~n_!id.!''!'i~ !_or_bo.!'~ ~n~ '!"'.:'.:' ~ ~~ . __________ • ____________ ••. • __ • .J22,~0~ •• __ . 1S~3_f1.1_
7_ D~a!!'O_!II!,•I_!!In_o!_ll'!"!.'"!!' _______ •• _. ______ • _________________ •• ____ • _J t •• __ • __ J3. 8)21aJ f~rojl~ "!"~8'2,9'!. ct!a~g~ 1'2, ~~"!!i~l!_d _ !)'/!'~.'':~ ________ ______ • ______ • _ 9~~ut;!c:'r!!'n!~·~•.91!!_er_lh!nJe!!'~r!'Y_im_pa_~!'.''!";2!1~"'2~ _ •• _ •••• ___ •• ___ • _ •• _
[~. ~"!_ad_l-J~~ C;!''!Yi'!,ll :!·~·."'.!'<!!ld_O~CU."!_R\.P"..!"'!I \!-I~O!_l_:2_! ::1~5 }•!•!-g_j" "" • • •" • • • • " • • • 1.!_. ~~u;t !!>I~ '!"~ad.m~~ :_~u~ls _____________ __ • ___ _ • ___ • ___ • ___ • _ t--------1-------1 11. Stalemonl value at end or current period (Line 10 minus Line II) 967,855 1,107,197
S101
STATEMENT AS OF JUNE 30, 2013 OF THE MINNESOTA SURETY AND TRUST COMPANY
SCHEDULED- PARr1B Showing the AClluisitions, Dispositions and Non-Trading Activity
Ounng the Current Quart« for all Bonds and Preferred Stock by Rilllnlj Class
J I 4 I s I 6 Boo4<1Adjusted Bot>k/Ad'.,.red Book/Ad~sted
Canying Value Acquisn:OOs Dispositions I Noll-Tracing Canying Value Book/Adjusted I Book/Adjus!l!d Can;;ng Value Beginniog or During Currem During Current ActM!y During End of Fist Canying Value End Canying Value End December l1 Pr'<>r
Current Quarter QuartEr Quarter CLD1ent Quarter O.arter or S..oond Oual1er of Third Quarter Year
-- ·--- ~~s_. _- - - --- - - -- ~--- - .. - .. .... - -- -- ... - - -- - - ... - -- - ... - .. .,j- ·- - -- - -- ..... - .. ---- --
l_C_~~(!l _. _ _ -- - _ -------987.855 -- - - -~6l---~~~~ ':.~":::'~ (~) - - -- --- -
______ ---- -
j ------___ ---
.;_ £~] ~)__ ---- - ------ -- ------- - -- -~ -- - - - - - -~--------
!-::_ £~~~'------- - ----- -- -- --~ £"'!'..?~'- - ----- -i Class6 la
-- -----------7. •otaJBonds 987,85; 5861 988.441
PREFEAA:C STOCK
!!. Class 1
9. Class 2 ------ r---- --10. Class3
------ r- ---- -11. Class4 -- - --- ~ --- - - -
-- ---- ------12. C\aso 5 __ . ____ ------13. Class 6
14 Total Prele""d Stock
Its. Total Bonds & Preferred S!Dck
S102
0>
"' 0 -;:: ~
cO "" 0 0
62-CV-11-9400
STATEMENT AS OF JUNE 30,2013 OF THE MINNESOTA SURETY AND TRUST COMPANY
Schedule DA • ParT 1
NONE Stl1crlulo DA · Verificat ion
NONE Schedule DB • Part A Verification
NONE
Schedule DB- Part B Vcriflr.ntion
NONE Schedulo DB· Part C ·Section 1
NONE S<:hedull! DB · Part C - Secllan 2
NONE Sthcdull! DB -Venne lion
NONE Schedule E Vc1 il1 allun
NONE Schcdul~ A -Pan 2
NONE Schedule A· Part 3
NONE Schedule B -Part 2
NONE Schedule BA • Part 2
NONE
5103, 5104, 5105, 5106,5107, 5108,E01,E02,E03
62-CV-11-9400
STATEMENT AS OF JUNE 30, 2013 OF THE MINNESOTA SURETY AND TRUST COMPANY
Schedule BA- Part 3
NONE Schedule D - Part 3
NONE
Schedule D · Pmt 4
NONE Schedule DB • Port A • Section 1
NONE Schedule DB • Pt. A • Sn. 1 • Footnote (n)
NONE Schedule DB· Pt. B • Section 1
NONE Schedule DB- Pl. B • Sn. 1 -Footnotes
NONE Schedule DB • Part D
NONE Schedule OL · Part 1
NONE Schedule DL · Part 2
NONE
Schedule E- Part 2
NONE
E03, E04, E05, E06, E07,E08, E09, E10
62-CV-11-9400
STATEMENT AS OF JUNE 30,2013 OF THE MINNESOTA SURETY AND TRUST COMPANY
SCHEDULEE-PART1-CASH 1 2 3 4 5 f)....,. o ...... ll~ BlEnd ol Ea~h Moolll During Curr~l ' i 9
Amount of Amount of 6 7 8 Interest Interest Received Accrued at During Current
Rate of Current Statement Second Depository Location Interest Quarter Date First Month Monlh lhirc.l Month
~!l!!!l_l_lll_§_~te -~-~~--··--- AU5l>ll, IIRilnesotJ _.,,,_ ...... .•. 7.~69 --127,....... 33 412 127,385 XXX WeH_s.. f..?,!Ji.Q_ _ ~iiiirie-ii'PofiG:"'L Minnesota ·- -·--· 136.q~! --3.§~~ XXX
-- XXX Sterling Stale Bank - I:IUF Austin. Mlr lll<l5llli.l
- - - 179,001 179,001 179,001 XXX 0199999 Totals - Open Deposnorle& 322:403 306.446 310,0:.!4 100(
0499999 Casn tn Company's Offrce 200 200 200 <XX
0599999 Total 322,603 306.646 310,224 XXX
E 11