Pennsylvania Blocked Again in Bid to Take Insurer’s Cash

July 23, 2018

A federal judge is blocking a third attempt in as many years by Governor Tom Wolf and state lawmakers to take at least $200 million in surplus cash from a state-chartered medical malpractice insurer of last resort.

U.S. District Judge Christopher Conner last week sided again with the Pennsylvania Professional Liability Joint Underwriting Association and temporarily blocked enforcement of a law Wolf signed last month authorizing a state takeover in a bid to divert the association’s surplus.

The association says it violates various constitutional provisions.

In May, Conner permanently blocked a previous attempt, saying the state was unconstitutionally trying to seize private property without fair compensation.

The association says its reserves were generated from policyholder premiums and investment income and that taxpayer money never funded its operations.

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