Allegations of impropriety in transactions between an insurance company and a reciprocal insurance exchange are under the jurisdiction of the trial courts, not Pennsylvania’s Insurance commissioner, the Commonwealth Court has ruled.
A split en banc panel held Jan. 27 in Erie Insurance Exchange v. Pennsylvania Insurance Department that a complaint over sums Erie Indemnity Co. allegedly wrongfully appropriated presents common-law tort and contract claims that are not so complex as to require the “special competency of the Department [of Insurance].” The ruling vacated a decision made by Insurance Commissioner Teresa D. Miller and remanded the matter to the department for transfer back to the trial court.
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