Dispute Between Reliance Liquidator and Funds

The liquidation of Reliance Insurance Co. has given rise to a disagreement between the liquidator and the guaranty funds according to a report filed in Pennsylvania court. There is a difference in opinion on an interim plan to handle large deductible policies Reliance issued and who is entitled to the deductibles - Reliance or the guaranty funds. The report states that the insureds at issue, mostly workers' compensation policy holders, agreed to deductibles of $100,000 to $500,000 per occurrence. The insureds either made arrangements for the payment of claims and funded the claims thems...