Reinsurer Not Obligated to Pay For Settlement of Foster Care Action

HARRISBURG, Pa. - A reinsurer is not obligated to reimburse a governmental risk pool for sums spent in litigating and settling claims accusing two state counties of avoiding per diem child foster care payments, a Pennsylvania federal judge has ruled. Pennsylvania County Risk Pool, et al. v. Northfield Insurance Co., No. 07-0898 (M.D. Pa.).

In a Feb. 27 order granting Northfield Insurance Co. summary judgment, Judge Yvette Kane of the U.S. District Court for the Middle District of Pennsylvania ruled that the claims fell within the reinsurance policy's exclusion for claims seeking solely declaratory, injunctive or equitable relief.

Pennsylvania County …