PENNSYLVANIA COMMONWEALTH COURT ORDERS LIQUIDATION OF PILGRIM LIFE INSURANCE CO.
HARRISBURG, Pa., July 7 /PRNewswire/ -- Commonwealth Court today ordered the liquidation of Pilgrim Life Insurance Co. of Folcroft, Pa. The order was in response to a petition filed on May 12 by the state Insurance Department that claims Pilgrim Life is insolvent because it did not meet statutory capital and surplus requirements. The company consented to the liquidation July 2. Pilgrim, a life, accident and health insurance company, has approximately 37,000 policies in force. The firm was licensed to sell insurance in Pennsylvania and Delaware. Under the order, the Insurance Department will take possession of the company's assets and supervise the liquidation process. The order triggers applicable state guaranty funds which protect consumers when a licensed insurance company is liquidated. The guaranty funds generally provide health insurance policy benefits up to $100,000; surrender value for life insurance policies and annuities up to $100,000; and death benefits up to $300,000. Consumers will be notified regarding the status of existing policies. Insurance Commissioner Cynthia M. Maleski issued a suspension order against the company on May 14, requiring Pilgrim Life to obtain department approval for financial transactions and to stop issuing new policies. In accordance with the court-ordered liquidation, all known policyholders and claimants will be mailed proof-of-claim forms, instructions for filing claims and a question-and-answer sheet explaining the liquidation process. Consumers who have questions about the liquidation of Pilgrim Life should call 717-787-7823. /delval/ -0- 7/7/93 /CONTACT: Leslie Osborn of the Pennsylvania Department of Insurance, 717-787-3289/
CO: Pennsylvania Department of Insurance; Pilgrim Life Insurance Co. ST: Pennsylvania IN: INS SU:
MJ-CC -- PH023 -- 9173 07/07/93 16:02 EDT
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|Date:||Jul 7, 1993|
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