Liquidator Asks Court To Allow Insured To Receive Direct Reinsurance Payments

(December 4, 2015, 10:21 AM EST) -- HARRISBURG, Pa. — The liquidator of an insolvent insurer asked a Pennsylvania court on Nov. 17 to approve a direct payment cut-through provision of a reinsurance agreement, thus allowing reinsurance payments to be made from the insurer’s captive reinsurer to the insurer’s insured (In re: Reliance Insurance Company in Liquidation, No. 1 REL 2001, Pa. Cmwlth.).

(Application available. Document #10-151224-015X.)

Reliance Insurance Co. was placed into liquidation on Oct. 3, 2001, by the Pennsylvania Commonwealth Court. The court appointed the state’s insurance commissioner as liquidator....
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