Pennsylvania to Handle Reliance's Out-of-State Statutory Deposits.

The Pennsylvania Department of Insurance, which is overseeing the rehabilitation of Reliance Insurance Co., has won court approval to take control of about $350 million in statutory assets that Reliance had deposited in other states.

Commonwealth Court Judge James Gardner Colins has ruled that Pennsylvania will handle the deposits, which state insurance departments routinely hold as a condition for both in-state and out-of-state companies to do business in their state, said Rosanne Placey, press secretary for the Pennsylvania insurance department. Pennsylvania is acting as lead regulator in the Reliance case because Reliance is domiciled in the Keystone state.

Included in the $350 million is $213 million deposited in California, Placey said. While no formal rehabilitation plan is in place yet, Placey said the department is planning to use the statutory assets to pay the claims from that state.