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Case 16-42529 Doc 53 Filed 04/13/16 Entered 04/13/16 12:50:57 Main Document <br />Pg6of31 <br />August 2016. The Debtors do not believe that there are any prepetition payment defaults under <br />any of the Insurance Policies. <br />12. The Debtors maintain a captive insurance company Sterling Centennial <br />Missouri Insurance Corporation ("Sterling"), a non -Debtor affiliate of the Debtors in <br />connection with their general liability / automobile liability and property insurance programs. <br />Specifically, the Debtors maintain their general liability / automobile liability Insurance Policies <br />with Ace American Insurance Company (now Chubb) ("Ace"), and Ace obtains reinsurance from <br />Sterling. The Debtors make annual premium payments directly to Ace, and Ace pays a portion <br />of those premiums over to Sterling. Part of the annual premium payment that Ace cedes to <br />Sterling is used to fund anticipated general liability / automobile liability claim payments that <br />Sterling will be required to make as the reinsurer. In unusual circumstances (such as if the <br />Debtors were to experience unusually high claims under their general liability / automotive <br />liability Insurance Policies), additional payments to Sterling may be necessary.$ ESIS, Inc. <br />("ESIS") is the third -party administrator for the Debtors' general liability / automotive liability <br />claims. In exchange for ESIS's services, ESIS receives payments (the "ESIS Payments") that are <br />paid by Sterling. <br />13. Separately, the Debtors maintain property insurance through a fronted / <br />self-insured Insurance Policy issued by Sterling. Following receipt of the Debtors' annual <br />premium payments paid by the applicable Financier Sterling pays 100% of such annual <br />premiums to various third -party insurance companies. Also included in the total property <br />The Debtors' Directors and Officers Liability and Fiduciary Policies expiring May 1, 2016 has been <br />renewed, bound and paid, including brokers fees. A Tail Directors and Officers Liability Policy has also <br />been bound and paid, including brokers fees. <br />It is possible that the Debtors could make these additional payments either to Sterling directly or through <br />Ace. <br />Ell <br />