PENNSYLVANIA BILL WOULD HELP GUARANTY ASSOCIATIONS.
The Pennsylvania Senate has approved legislation that would help guaranty As a verb, to agree to be responsible for the payment of another's debt or the performance of another's duty, liability, or obligation if that person does not perform as he or she is legally obligated to do; to assume the responsibility of a guarantor; to warrant. associations by ensuring that large commercial policyholders whose policies carry large deductibles remain responsible for those deductibles even after the insurer An individual or company who, through a contractual agreement, undertakes to compensate specified losses, liability, or damages incurred by another individual.
An insurer is frequently an insurance company and is also known as an underwriter. becomes insolvent INSOLVENT. This word has several meanings. It signifies a person whose estate is not sufficient to pay his debts. Civ. Code of Louisiana, art. 1980.. A person is also said to be insolvent, who is under a present inability to answer, in the ordinary course of business, the responsibility .
The 47-2 vote in the Senate sends the measure, SB 215, to the Pennsylvania House.
Large commercial policyholders often have policies for worker compensation, commercial auto and general liability exposures with deductibles of $250,000 or more per claim.
Two Pennsylvania-based carriers that wrote large amounts of deductible That which may be taken away or subtracted. In taxation, an item that may be subtracted from gross income or adjusted gross income in determining taxable income (e.g., interest expenses, charitable contributions, certain taxes). business - Reliance Insurance Co. and Legion legion, large unit of the Roman army. It came into prominence c.400 B.C. It originally consisted of 3,000 to 4,000 men drawn into eight ranks: the first six ranks, called hoplites, were heavily armed, while the last two, called velites, were only lightly armed. Insurance Co. - have become insolvent, leaving the guaranty associations to cover claims against them through assessments on other insurers.
The associations argue they should be treated the same way the insolvent carrier would have been on the deductible exposure, while the Insurance Department regards the benefits are an asset of the estate and says they should benefit all creditors.