The court handling the liquidation of Reliance Insurance Company has approved an application for the direct payment of reinsurance proceeds by United Insurance Company to Reliance’s insured, Hoechst Celanese Corporation, with respect to certain workers compensation and employers liability policies issued to Hoechst for the policy periods of 1989 and 1990. The court found that United had unequivocally assumed Reliance’s direct coverage obligations to Hoechst, that Hoechst had consented to this direct payment and released Reliance for all related claims, and that permitting such direct payment complied with the Section 534 of Article V of the Pennsylvania Insurance Department Act of 1921, the court’s own guidelines for enforcement of the Act, and the applicable reinsurance agreement.
In re Reliance Insurance Company, No. 1 REL 2001 (Pa. Comm. Ct. Nov. 22, 2016 )
