Appeal from the Order of the Insurance Commissioner of Pennsylvania in case of In Re: Pennsylvania Assigned Claims Plan, Docket No. C-79-10-6.
John M. Fitzpatrick, with him Jeffrey A. Less, and Raphael A. Porrata-Doria, of counsel, Dilworth, Paxson, Kalish, Levy & Kauffman, for petitioner.
James R. Farley, Assistant Attorney General, with him Beth C. Sheligo, Assistant Attorney General, and Edward G. Biester, Jr., Attorney General, for respondent.
President Judge Crumlish and Judges Wilkinson, Jr., Mencer, Rogers, Blatt, Craig and Williams, Jr. Judge MacPhail did not participate. Opinion by President Judge Crumlish.
The Pennsylvania Assigned Claims Plan (Plan) seeks review of the Insurance Commissioner's (Commissioner) order requiring it to pay the basic loss benefit claims that Safeguard Mutual Insurance Company would be legally obligated to provide claimants under the Pennsylvania No-Fault Motor Vehicle Insurance Act.*fn1 We affirm.
On May 29, 1979, the Commissioner suspended Safeguard's operation of business based on an insolvent financial condition which could prove harmful to both policyholders and the general public.*fn2 The suspension prohibited the issuance of policies, the transfers of property, and the payment of monies and claims without his prior written approval.
On November 30, 1979, the Commissioner ordered the Plan to promptly provide those legally obligated basic loss benefits covered by the No-Fault law. The adjudication found authority in Section 108(a)(1)(D) and (E), 40 P.S. § 1009.108(a)(1)(D) and (E), which provide in pertinent part:
(1) . . . [A] victim or the survivor or survivors of a deceased victim may obtain basic benefits through the assigned claims plan . . . if basic loss insurance:
(D) applicable to the injury is inadequate to provide the contracted-for benefits because of financial inability of an obligor to fulfill its obligations; or
(E) benefits are refused by an obligor for a reason other than that the individual is not entitled in accordance with this act to ...