California Insurance Commissioner John Garamendi sought and received an order of liquidation for the California business of Legion and Villanova Insurance Companies recently. The order, issued in California Superior Court in Los Angeles, ends a year-long legal struggle to get claims paid for California consumers holding Legion policies. Legion and Villanova are headquartered in Pennsylvania and were placed in rehabilitation by Pennsylvania regulators more than a year ago. A Pennsylvania judge has delayed three times issuing a liquidation order that would activate all guarantee associations providing payment on covered claims. Legion and Villanova conducted the majority of its business in California but did business in other states as well. The company wrote primarily private passenger auto liability and workers’ compensation insurance. Legion and Villanova were placed into rehabilitation by the Pennsylvania Insurance Department on April 1, 2002. That rehabilitation continues. During the California liquidation of Legion and Villanova, all California covered claims will be paid by the California Insurance Guarantee Association (CIGA).
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