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November
12, 2003: You
may have recently received an official mailing from the Commonwealth
of Pennsylvania Office of Liquidations, Rehabilitations and
Special Funds regarding your past medical malpractice insurance
coverage with Legion Insurance Company. The deadline for action
on your part - if indeed any action is required - is June
30, 2005.
Information
regarding the mailing you received can be provided by the
staff at the Commonwealth of Pennsylvania Office of Liquidations,
Rehabilitations and Special Funds hotline: (215) 979-7879.
In addition to calling the hotline, you may also refer to
past Legion updates below for more information about the liquidation
of Legion and the intervenor status of the Psychiatrists'
Purchasing Group, Inc.
Please
call us with any questions you may have regarding this update.
October
30, 2003: On
July 25, 2003, Judge Mary Hannah Leavitt of the Commonwealth
Court of Pennsylvania (Commonwealth Court) issued an order
to liquidate Legion Insurance Company (Legion) effective July
28, 2003.
However,
on June 26, 2003, the Commonwealth Court granted four Intervenors
direct access to Legion's reinsurers. This direct access
would enable each of the four Intervenors to seek coverage
directly from the reinsurers. (For more information, see Orders
on Pennsylvania Insurance Department web site.)
One
of the four Intervenors granted relief is the Psychiatrists'
Purchasing Group, Inc. (PPG), the sponsor of The Psychiatrists'
Program (The Program). The PPG had applied to the Commonwealth
Court to intervene, and was granted Intervenor status, to
protect the interests of psychiatrists who purchased coverage
from Legion through The Program.
Since
the Commonwealth Court issued the June 26 and July 25 orders,
the Pennsylvania Insurance Commissioner, as Rehabilitator
and Liquidator of Legion, has filed appeals of certain aspects
of these orders. Among other things, these appeals seek to
overturn the relief granted to the four Intervenors. (For
more information, see Pennsylvania
Insurance Department web site.)
While
the appeals are in progress, the Orders with respect to the
Intervenors have been stayed. This means that for the
four Intervenors only, Legion is operating as it did the
day before the order until such time as the stays are lifted.
At this
time, the matter remains in litigation. In the Commonwealth
Court, the PPG has filed a challenge to the reinsurer’s
assertion that it is not subject to the Court’s June
26 and July 25 Orders.
On October
7, 2003, the Commonwealth Court issued an order staying litigation
against Program participants with Legion coverage, for a period
of sixty (60) days or until the date on which the Court grants
PPG the relief it has requested.
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July
7, 2003: The Insurance Department petitions for an Entry
of Liquidation Order, pursuant to Commonwealth Court's
June 26, 2003 Opinion and Order on Original and Amended Petitions
for Liquidation for Legion and Villanova Insurance Companies
If you
have any questions, feel free to contact us. Find e-mail addresses,
phone numbers, and addresses to PRMS staff here: How
to Contact PRMS. To find out more about the Psychiatrists'
Program's new carriers, please visit our News
page.
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June
26, 2003: The Commonwealth Court of Pennsylvania issued
an Order related to the Petitions for Liquidation of Legion
and Villanova previously filed by the Pennsylvania Insurance
Department on August 29, 2002. It was accompanied by and tied
to a 90-page Opinion. As a result, we understand that Legion
and the Pennsylvania Insurance Department are in the process
of reviewing the Order and the Opinion of the Court. The
Order does not immediately change the status of Legion or
Villanova, and therefore both companies remain in rehabilitation
at this time. For more information, please visit the Pennsylvania
Insurance Department web site.
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June
25, 2003: The
Commonwealth Court of Pennsylvania Extends Stay on Litigation
Until July 31, 2003 for Legion Insurance Company (In Rehabilitation).
For more information, please visit the Pennsylvania
Insurance Department web site.
Earlier
News:
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