Guaranty Funds Sue PN Comm re Reliance $$

The aftermath of the Reliance Insurance Co. meltdown progressed last week when a consortium of 25 state guaranty gunds filed suit against Pennsylvania Insurance Commissioner, Diane Koken, seeking exclusive rights to policyholder reimbursements for claims paid by the funds under the large-deductible programs. The states hope to get a hold of the money to make up the $875 million in claims payments thus far made, and the anticipated $1 billion in future claims.Koken countered with a suit of her own, seeking a declaration that the reimbursements are part of the Reliance estate and should not be g...