LIQUIDATOR FOR RELIANCE INSURANCE COMPANY SEEKS APPROVAL OF COMMUTATION AGREEMENT WITH REINSURER
The Pennsylvania Insurance Commissioner, Michael Consedine, moved for approval of a commutation, settlement agreement and release entered into between Reliance Insurance Company (in liquidation) and C.S.C. Assurance, Ltd. Reliance was judicially determined insolvent in 2001, whereupon the Commissioner was appointed as liquidator. C.S.C. is a Class 3A insurer and reinsurer domiciled in Bermuda, which has been in run-off for over ten years. The agreement, if approved, would settle and finalize all facultative and treaty reinsurance contracts between Reliance and C.S.C. that have not already commuted. C.S.C. has agreed to pay $5,500,000 to the Reliance estate in exchange for commuting all such claims. In re Reliance Insurance Co. (in Liquidation), Case No. 1 Rel 2001 (Pa. Commw. Ct. Nov. 19, 2012)
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