PHICO to pay $10 million in settlement
(11/20/2003)--The Pennsylvania Insurance Department will collect $10 million from PHICO as a result of a legal complaint against several former officers and directors of PHICO Insurance Company. The settlement was announced on Tuesday by Insurance Commissioner M. Diane Koken.
In a press release, Koken said, "This is a tremendous victory for PHICO's former policyholders. The settlement will be used to cover losses that the policyholders suffered as a result of the company's insolvency."
The lawsuit, filed against 15 fomer directors and officers of PHICO, claimed that they breached their fiduciary duties while employed by PHICO. The U.S. Bankruptcy Court issued its approval on the settlement.
For more information, visit www.insurance.state.pa.us and click on PHICO.