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LEGION INSURANCE COMPANY (IN LIQUIDATION) CLAIMS From 1988 to 2002 Legion Insurance Company, a Pennsylvania based insurance company, was the principal carrier for The Psychiatrists’ Program. In mid-2003, due to Legion’s insolvency. the Pennsylvania Commonwealth Court issued various orders that put Legion into involuntary liquidation as of July 28, 2003, and the Pennsylvania Insurance Commissioner was named its “Statutory Liquidator”. In response to a court filing by Psychiatrists’ Purchasing Group (PPG) in the liquidation, among others, the Commonwealth Court authorized Program participants to have “direct access” to reinsurance that, prior to its insolvency, Legion had purchased specifically for the Program from Transatlantic Reinsurance Company. The Commonwealth Court’s Orders, including the provision for direct access to reinsurance, were affirmed by the Pennsylvania Supreme Court on July 19, 2005. As a result, all of the reinsurance purchased by Legion from Transatlantic covering Legion’s Program liabilities is available directly to Program participants. To the extent Legion’s estate has remaining unreinsured Program liabilities (1994 and 1995 Program years only), a procedure for handling claims was recently established by the Pennsylvania Commonwealth Court . The Court’s September 29, 2008 Order affects only the 1994 and 1995 Program years, that is, the only time period for which Legion’s estate has any remaining potential liability. Malpractice claims arising from medical incidents alleged to have first occurred during the time period from May 1, 1994 to April 30, 1996 should be reported as soon as possible in order to protect whatever rights there are against Legion’s bankrupt estate and/or the applicable state insurance insolvency fund. The September 29, 2008 Commonwealth Court Order provides that such claims will be deemed timely if the Program participant files them with Legion’s Statutory Liquidator within six months of receiving notice of the claim. Such claims will not be deemed timely, and all rights may be lost, if more than six months elapses after the Program participant receives notice of the claim and before the claim is reported. When filing such claims with Legion’s estate, the claimant should make reference to “Proof of Claim No. 136779” in all correspondence. Claims and inquiries about claims arising from incidents alleged to have first occurred during the period May 1, 1994 to April 30, 1996 should be submitted either to Professional Risk Management Services (PRMS) or to the Pennsylvania Insurance Commissioner as Statutory Liquidator of Legion Insurance Company (in Liquidation). The September 29, 2008 Commonwealth Court Order provides that such claims shall be referred by the Statutory Liquidator to the relevant guaranty association for initial handling. Program participants that are the subject of such claims may also contact their state guaranty association directly, but it would still also be necessary to file a claim directly with the Statutory Liquidator or PRMS within the six month time period described above. In addition, if you have previously filed a Proof of Claim against Legion’s estate for any year, you may recently have received a Notice advising you of an order of the Pennsylvania Commonwealth Court dated November 24, 2008. If you received such a Notice and you have either (i) resolved a claim against you but have not yet informed Legion’s Statutory Liquidator, or (ii) had previously received a request for more information from Legion’s Statutory Liquidator but have not yet responded, you should be aware that the Pennsylvania Commonwealth Court order of November 24, 2008 required that you provide such information to Legion’s Statutory Liquidator within 90 days from the date of your receipt of the Notice. It would be advisable to respond to the request for information, or notify Legion’s Statutory Liquidator that the claim against you was resolved, as soon as possible. It may also be advisable to consult your personal attorney. Claims and inquiries about claims arising from incidents alleged to have first occurred at times other than during the period May 1, 1994 to April 30, 1996 should be submitted to Professional Risk Management Services (PRMS) using the contact information shown below. General inquiries about claims should also be submitted to PRMS. Contact information for the Statutory Liquidator of Legion Insurance Company (in Liquidation) can be found at www.legioninsurance.com. Contact information for Professional Risk Management Services (PRMS) is the following: Professional Risk Management Services (PRMS) Additional information can be found in the Orders issued by the Pennsylvania Commonwealth Court and the Pennsylvania Supreme Court ruling.
Updated April 23, 2009
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