NOTICE TO THE POLICYHOLDERS, DEBTORS, PRINCIPALS, OBLIGEES, CLAIMANTS, CREDITORS AND ALL OTHER PERSONS INTERESTED IN THE AFFAIRS OF RELIANCE INSURANCE COMPANY (Reliance) (IN LIQUIDATION)
NOTICE IS HEREBY GIVEN:
The Commonwealth Court of Pennsylvania ordered Reliance Insurance Company (Reliance) into liquidation on October 3, 2001. M. Diane Koken, Insurance Commissioner of the Commonwealth of Pennsylvania, was appointed the Statutory Liquidator, and was ordered to take possession of Reliance’s property and to liquidate its business. The Commissioner appointed Deputy Commissioner William S. Taylor her agent for the liquidation.
All references to “Reliance” herein shall include the following companies which were previously merged into Reliance Insurance Company with approval of the Commissioner: Reliance National Indemnity Company, Reliance National Insurance Company, United Pacific Insurance Company, Reliance Direct Company, Reliance Surety Company, Reliance Universal Insurance Company, United Pacific Insurance Company of New York and Reliance Insurance
Company of Illinois.
This information is important.
It is recommended that you read it carefully before
contacting the Liquidator’s Office with questions. You may also want to consult your attorney or insurance advisors before you proceed.
Certain claims may also be covered by guaranty associations in the state of their residence or in the state of the insured’s residence. Guaranty associations and funds were created by state law to provide protection to insureds in the case of a liquidation. The va ious state laws governing the guaranty associations include eligibility requirements and limits on the amount of coverage available. Insureds who are covered by a Reliance policy may be entitled to the protection of the property and casualty insurance guaranty association, the workers’ compensation guaranty fund or the life and health guaranty association in the state where they reside or in the state in which the insured property is situated.
If you have and wanttopursueaclaimagainstReliance,youmust ileaproofofclaiminordertohaveyourclaim considered. Detailed instructions for iling a proof of claim are compiled in a separate enclosed document. Proofs of claim must be iled no later than December 31, 2003.
You are a third party claimant if you have a claim against a Reliance insured which may be covered by the insured’s insurancepolicy. Youmayeither ileaclaimwiththeStatutoryLiquidatororpursuelegalactionagainsttheinsuredtorecover your claim. If you ile a claim with the Liquidator, iling of the claim shall operate as a release of the insured’s liabilityto you on that cause of action in the amount of applicable policy limits. If coverage of the claim is avoided by the Liquidator, this release becomes null and void.
Generally,claims iledafterthe ilingdeadlineareconsideredtimely iledbytheStatutoryLiquidatorifinthediscretion of the Liquidator it is determined that the claim was iled within a reasonable time after discovery of the claim and acceptance of the claim would not interfere with the orde ly administration of the estate. Some state guaranty associations have statutory claim iling provisions which will prohibit payment by the guaranty association after a certain pe iod of time has elapsed. In many instances that date is the December 31, 2003 date set by the Liquidator, but in some instances, it is a date before December31,2003. Thisisanotherreasonyoushouldpromptly ileyourclaim.
Aproofofclaimmustbe iledevenifaclaimwasmadeagainstReliancep iortoliquidation,andaseparateproofof claimformmustbe iledforeachclaimyouhave. Aproofofclaimshallincludethefollowing: Aproofofclaimformcontaining theo iginalsignatureoftheclaimant;adesc iptionoftheclaimandanysecu ityinterest;whethercollateralsecu ityorpersonal secu ity is pledged in accordance with the terms of the policy; documentation of any payments made on the claim; and a statement that the amountisjustlyowedtheclaimant.Ifyourequireadditionalproofofclaimforms,youmaymakecopiesof the one attached, request them from the Statutory Liquidator at the address below, or download them at the Department website: www.insurance.state.pa.us.