PENN. DEPT. TAKES OVER PHICO

Pennsylvania Insurance Commissioner Diane Koken announced that the State’s Commonwealth Court granted the Department’s petition to place PHICO Insurance Company of Mechanicsburg under rehabilitation. The move was triggered when PHICO, which specializes in medical malpractice coverage, filed a late quarterly statement showing a surplus of $6.8 million, a sharp decline from the $127 million it had at the end of the year. Koken said that the dramatic decrease imperiled the company’s assets, and required immediate action.