Reliance Liquidator Seeks Court Approval for Commutation Settlements with Reinsurer

The liquidator of Reliance Insurance Co. is seeking court approval for a settlement and commutation agreement with one of its many reinsurers for just under $13.6 million. The collapse of Reliance in 2001 – after 184 years of business – was one of the largest carrier failures in U.S. history, according to the Property Casualty Insurers Association of America. Reliance owed $10 billion in claims and was insolvent by $1.1 billion when it went under. Its obligations for some 144,000 pending claims were covered by reinsurance agreements with a plethora of carriers from around th...