News
PA Supreme Court Ranks Subrogation Rights Arising Out of Insurer’s Liquidation.
October 15, 2009
Share to:
In the case of <i>Ario v. Reliance Insurance</i>, the PA Supreme Court was called upon to decide, under Section 544 of the Insurance Department Act, 40 P.S. § 221.44, what priority classification “ought to be assigned to a subrogation claim held by an insurance company against an insolvent insurer under the Act.” The court held, in a case of first impression, that subrogation claims should be assigned a section “g” classification, which puts the subrogating insurer seventh in line for payment. In other words, the subrogating insurer would likely have better luck getting blood from a stone.
<a href="http://www.pacourts.us/OpPosting/Supreme/out/J-11-2009mo.pdf">http://www.pacourts.us/OpPosting/Supreme/out/J-11-2009mo.pdf</a>