Cornerstone National Insurance Co. has entered rehabilitation, and Missouri Department of Commerce and Insurance director Angela Nelson (pictured above) has been named the court-appointed receiver.
The department stated that the rehabilitation period runs from Jan. 1 to Feb. 28, with liquidation effective March 1. It also stated that all Cornerstone policies will terminate by March 31 and urged agents and policyholders to begin transitioning coverage to a new carrier.
Rehabilitation does not always end in liquidation, and regulators in other cases have used the process to hold a carrier’s operations in place while a longer-term transaction is reviewed.
JAB Insurance, for example, entered into a purchase agreement involving Columbian Financial Group, where the deal was tied to a proposed Plan of Rehabilitation and structured to allow the companies to exit rehabilitation if approved.
Cornerstone is domiciled in Missouri and writes homeowners, auto and liability coverage in nearly 20 states, according to the department. The insurer has 2,706 in-force policies, and regulators in at least seven other states are taking similar actions against the company.
The Missouri department reported that Cornerstone does not have any active policies in Missouri, with most of its business concentrated in Oklahoma and Illinois.
The department cited ongoing losses and a decline in surplus, reporting that Cornerstone’s surplus fell from $1.1 million as of Dec. 31, 2024, to a $378,131 deficit as of Sept. 30, 2025.
The use of rehabilitation has also surfaced outside the property/casualty market, as regulators look for court oversight when financial conditions deteriorate. In Minnesota, state officials asked a court to place HMO UCare Minnesota into rehabilitation, citing a projected deficit of $372.9 million by the end of Q1 2026.
