An insurer’s pre-insolvency denial of coverage, without judicial confirmation, does not defeat a covered claim under the Pennsylvania Property and Casualty Insurance Guaranty Association Act, the state Superior Court has ruled.
A unanimous three-judge panel ruled March 21 in Green v. Pennsylvania Property and Casualty Insurance Guaranty Association that James Green can proceed in his declaratory judgment action against the guaranty association because his insolvent insurer’s denial of coverage was not resolved by a judge prior to its 2004 insolvency. The decision vacated an order from the Allegheny County Court of Common Pleas granting summary judgment in favor of the guaranty association and remanded the case.
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