Auto Insurer, Pa. End Dispute Over 'Sham' Stock Gifts

Law360, New York (October 18, 2011, 5:36 PM EDT) -- Kingsway Financial Services Inc. said Monday it had settled a dispute with the Pennsylvania Insurance Department alleging that the auto insurer engaged in sham transactions in order to abandon a troubled subsidiary.

As part of the settlement, Kingsway has agreed to reacquire 49 percent of its former subsidiary's holding company, Walshire Assurance Co., in a joint venture with Tawa PLC, Pennsylvania's insurance regulator confirmed Tuesday.

Kingsway and the insurance department reached the deal after nearly a year of negotiations, Kingsway said.

Pennsylvania's insurance regulator sued Kingsway...
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