According to JUA, complying with the State’s demand means it will be forced to shoulder transaction costs including brokerage fees. It will also suffer investment losses. It will not have enough money to satisfy its policies.
Pennsylvania AG says State has authority to dissolve JUA
In response to JUA’s complaint, the Pennsylvania Attorney General’s Office said the State government created the association. Therefore, it has the authority to dissolve it.
Additionally, the State lawyers argued that the association has excessive reserves and do not belong to it.
In its court filings, JUA argued that its reserves came from premiums and the Stare has no right to take it. The association also emphasized that no regulator including the State Department of Insurance considered its reserves to be excessive. It has $268 million surplus as of December 31.
In July, JUA President Susan Sersha said, “Seizure of the JUA’s asset could potentially limit the health care services available in Pennsylvania and leave injured patients with no recourse should a health care provider be found liable for their injuries.
