Judge Again Rules Against $200M Raid on Pennsylvania Insurance Surplus

December 21, 2018

A federal judge is again ruling against Pennsylvania legislation that would take at least $200 million from a state-chartered medical malpractice insurer of last resort.

U.S. District Judge Christopher Conner said the state can’t “legislatively recapture” the Pennsylvania Professional Liability Joint Underwriting Association to take its assets.

Conner blocked a previous attempt in May, ruling the association was a private entity and its surplus is private property that can’t be taken without fair compensation. The association has never taken public money.

Lawmakers and Gov. Tom Wolf enacted a new law this summer, the third attempt to take the money in three years.

The judge temporarily blocked it in July and most recently declared the new law violated the U.S. Constitution and issued a permanent injunction.

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