Moreover, JUA emphasized that its Reserves came from premiums and investment income. The state has no right to it. The State Insurance Commissioner or any regulator does not have the authority to determine that it has excessive Reserves.
Judge rejects the arguments of Pennsylvania state lawyers
JUA requested the court to stop Gov. Wolf’s administration from sequestering its funds. This week, U.S. District Judge Christopher Conner granted its request. The judge suspended the state government’s December 1 deadline for its financial demand from JUA until they go to trial.
In his ruling, Judge Conner rejected the state government’s claim that JUA’s Reserves belong to it. State lawyers argued that the governing plan of the insurer indicates that if it shuts down, its funds will go to the state.
According to the judge, the state lawyers misinterpreted the wording of JUA’s governing plan, which states that its Board will decide the distribution of its assets. The State Insurance Commissioner, who is appointed by the governor, will approve the decision of JUA’s Board.
