On July 23, 2008, the California Insurance Department announced that it had recovered $56.25 million from Continental Casualty Co. (“Continental”) in connection with a surety bond issued by Continental that guaranteed the obligations of Superior National Insurance Company (“Superior”), a workers’ compensation insurer that was liquidated in 2000. When Superior failed, Continental “balked” at paying the amount owed under the surety bond and the California Insurance Guarantee Association (“CIGA”) ended up paying more than $500 million in workers’ compensation claims. The resulting litigation over the bond was recently settled, with Continental agreeing to pay $56.25 million. After deducting litigation expenses, CIGA recovered approximately $56 million. The California Insurance Department’s announcement of the settlement can be found by clicking here.