Ario v. Reliance Insurance

OPINION

Justice GREENSPAN.

We evaluate Section 544 of the Insurance Department Act, 40 P.S. § 221.44 (the “Act”) and determine what priority classification ought to be assigned to a subrogation claim held by an insurance company against an insolvent insurer under the Act. We hold that this type of claim is a loss claim for which the loss has been indemnified and therefore that the appropriate classification is set forth in subsection (g) of Section 533 of the Act. We therefore reverse the holding of the Commonwealth Court which improperly adopted a referee’s determination that the appropriate…