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Pennsylvania Agrees to Settle Reliance Case

On February 24, the Pennsylvania Insurance Department submitted a proposal to settle the state's civil lawsuit against Saul Steinberg and other former officials of the...
March 1, 2005

On February 24, the Pennsylvania Insurance Department submitted a proposal to settle the state's civil lawsuit against Saul Steinberg and other former officials of the defunct Reliance Insurance Co. to Commonwealth Court President Judge James Gardner Colins for approval. The deal calls for the state to receive $51 million, far less than the hundreds of millions of dollars originally sought to compensate policyholders. The department said $34 million also will go to creditors of Reliance's parent companies, Reliance Group Holdings Inc. and Reliance Financial Services Corp.  While the settlement would resolve the civil action, Pennsylvania Insurance Commissioner Diane Koken said that law enforcement officials are still investigating the collapse.

PA Regulators Settle With Failed Insurer (Los Angeles Times 2/25/05)

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