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Article: Road ends for Reliance; WTC disruption speeds insurer's entry into liquidation.(Brief Article)
- Article from:
- Business Insurance
- Article date:
- October 8, 2001
- Author:
CopyrightCOPYRIGHT 2001 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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HARRISBURG, Pa.-The widening impact of the terrorist attack on the World Trade Center now includes hastening the slide of Reliance Insurance Co. into liquidation.
The Pennsylvania Insurance Department last week gave up on its four-month effort to rehabilitate Reliance, placing the insurer in liquidation after concluding that it was insolvent by $1.05 billion as of last March 31 and will run out of cash to pay claims before the end of this year.
Among the factors triggering the liquidation, Pennsylvania regulators cited a further slowdown in reinsurance collections, the insurer's main source of cash, since the Sept. 11 catastrophe. Reliance brokers Aon ...