PA: Federal Judge Issues Preliminary Injunction to Prevent State from Dissolving Med Mal Insurer and Taking its Money

Two weeks ago, I reported that the Commonwealth of Pennsylvania was attempting to use surplus funds from a med mal insurer that was created by state law, but was not a part of state government.  Pennsylvania, trying to balance its budget, passed a law requiring the Pennsylvania Professional Liability Joint Underwriting Association (JUA)  to turn over $200M of a $268M surplus by December 1.  If it fails to comply, the law abolishes the JUA and transfers its money to the Department of Insurance.  Now Judge Christopher Conner has issued a preliminary injunction barring the state from carrying out that action.  The judge’s order puts the issue on hold until a federal trial can be held.  PennLive has the story.