creature of statute arising under the Pennsylvania No Fault Act. The Pennsylvania Assigned Claim Plan assigned the claim to Travelers Insurance Company because the injured plaintiff had no insurance policy. The facts of this case are completely different because here there is an insurance policy, which contains an arbitration clause, and under the statute PIGA assumes all of the rights, duties and obligations the insolvent insurer.
The law in this case would appear to be clear. One of the purposes of the Pennsylvania Insurance Guaranty Association Act is "to provide a means for the payment of covered claims under certain property and casualty insurance policies, to avoid excessive delay in the payment of such claims, and to avoid financial loss to claimants or policyholders as a result of the insolvency of an insurer." Pa. Stat. Ann. tit 40, § 1701.102(1) (1992). To achieve the purposes of the statute PIGA is "deemed the insurer to the extent of its obligation on the covered claims and to such extent shall have all rights, duties, and obligations of the insolvent insurer as if that insurer had not become insolvent." Id. § 1701.201(b)(ii). As the Pennsylvania Supreme Court has stated
The only limitation placed upon an injured party is that the Association's own limitations of liability apply rather than that of the insolvent insurer. Thus, by clear and unambiguous terms of the statute, PIGA is deemed to be an insurer and is placed in the stead of the insolvent insurer, with all of that insurer's rights, duties, and obligations.
Donegal Mut. Ins. Co. v. Long, 528 Pa. 295, 597 A.2d 1124, 1127 (Pa. 1991). Accordingly, the insurance policy entered into between American Universal Insurance Group and Brad Trabosh remains in force. The only exception is that the statutory limit of $ 300,000 less the $ 100 deductible applies and not the limit of $ 500,000 contained in the policy. PIGA has all the rights, duties, and obligations of AUIG.
One of those obligations is to abide by the language of the insurance policy's arbitration clause. In the Order of October 30, 1992 this Court analyzed the arbitration issue thoroughly. Plaintiff has not presented any law or facts that would lead the Court to change its analysis and conclusion. Therefore, the parties shall proceed to arbitration where the arbitration panel may decide the issues of limitations of coverage, setoff, and other issues in dispute between the parties.
For the foregoing reasons, the Court will deny Plaintiff's motion for reconsideration. The Court will order the parties to proceed to arbitration in accordance with the language of the arbitration provision of the AUIG insurance policy.
Daniel H. Huyett, 3rd, Judge
EDITOR'S NOTE: The following court-provided text does not appear at this cite in 812 F. Supp. 522.
ORDER - December 29, 1992, Filed; December 30, 1992, Entered
December 23, 1992
Upon consideration of Plaintiff's motion for reconsideration, Defendant's response, and for the reasons given in the foregoing memorandum, Plaintiff's motion for reconsideration is DENIED. The parties shall proceed with arbitration to settle their disputes.
IT IS SO ORDERED.
Daniel H. Huyett, 3rd, Judge