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ALABAMA INS. GUAR. v. RELIANCE INS. CO.

No. 6 REL 2012

100 A.3d 702 (2014)

ALABAMA INSURANCE GUARANTY ASSOCIATION, Objector v. RELIANCE INSURANCE COMPANY IN LIQUIDATION, Respondent. (Ancillary Matter to In Re: Reliance Insurance Company in Liquidation, No. 1 REL 2001).

Commonwealth Court of Pennsylvania.

Decided September 12, 2014.

Attorney(s) appearing for the Case

Steven B. Davis and Karl S. Myers , Philadelphia, for plaintiffs.

Howard K. Glick , Birmingham, AL, for objector.

BEFORE: DAN PELLEGRINI, President Judge, and BONNIE BRIGANCE LEADBETTER, Judge, and RENÉE COHN JUBELIRER, Judge, and ROBERT SIMPSON, Judge, and MARY HANNAH LEAVITT, Judge, and PATRICIA A. McCULLOUGH, Judge, and ANNE E. COVEY, Judge.

OPINION BY Judge LEADBETTER.

We are called upon here to determine whether a claim against the Reliance estate in liquidation arises from a policy of direct insurance so as to be entitled to distribution from estate assets at priority level (b) or a policy of reinsurance entitled to priority level (e). The Liquidator assigned priority level (e) to the claim by the Alabama Insurance Guaranty Association (AIGA) for reimbursement of funds it paid to cover liability under...

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