State’s High Court Affirms That Liquidator Properly Called Policy Reinsurance
(August 21, 2015, 1:06 PM EDT) -- HARRISBURG, Pa. — Pennsylvania’s high court on Aug. 17 affirmed a lower court decision that a certain policy was reinsurance and that the liquidator of an insolvent insurer correctly assigned the applicable payment priority to the underlying claim (Alabama Insurance Guaranty Association v. Reliance Insurance Company in Liquidation, No. 122 MAP 2014, Pa. Sup., Middle Dist.; 2015 Pa. LEXIS 1777).
(Order available. Document #10-150828-022R.)
The Pennsylvania Commonwealth Court ordered Reliance Insurance Co. into liquidation on Oct. 3, 2001, and appointed the state’s insurance commissioner as liquidator....