Ala. Can't Dictate Reliance Claim Status, Pa. Justices Say

Law360, New York (August 18, 2015, 9:53 PM EDT) -- The Pennsylvania Supreme Court affirmed Monday that the liquidating trustee for Reliance Insurance Co. was not bound by any Alabama high court ruling when determining the priority that should be given to a claim filed against the insurer by the Alabama Insurance Guaranty Association.

The Pennsylvania high court’s one-page order upheld a 2014 precedential ruling by the state Commonwealth Court that the liquidator did not err in considering the $1.2 million claim to be under a reinsurance policy rather than direct insurance, because Pennsylvania law trumps Alabama law when determining how to prioritize the claim, which was filed against AIGA in...

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