RELIANCE SENT TO REHAB

Financially troubled Reliance Insurance Company was placed into rehabilitation on May 31 at the request of the Pennsylvania Insurance Department. A Penn.-domiciled company, Reliance is licensed to write coverage in all 50 states, although it ceased writing virtually all new or renewal business in June 2000. The Order of Rehabilitation grants direct authority to the Insurance Commissioner to preserve the assets of the company and to oversee its financial situation and current operations while continuing to pay policyholder claims. The Insurance Department will evaluate the company’s finances and determine the viability of a plan of rehabilitation. Included in the Order are the following companies that were previously merged into or otherwise acquired by Reliance Insurance Company: Reliance Insurance Company of Illinois; Reliance Direct Insurance Company; Reliance Surety Company; United Pacific Insurance Company; Reliance National Insurance Company; Reliance Universal Insurance Company Inc.; Reliance National Indemnity Company; United Pacific Insurance Company of New York; and Reliance Lloyd’s.

Topics Carriers