CIGNA defenses questioned; policyholder attorney claims insurer contradicting its position in courts.

Business Insurance, December, 1996 by Lenckus, Dave

HARRISBURG, Pa. - CIGNA Corp. is arguing in a Pennsylvania court that its critics have no right to appeal the regulatory approval of its reorganization, even though it is arguing otherwise in coverage litigation elsewhere, a policyholder attorney contends. In coverage disputes in other courts with policyholders that have raised questions about CIGNA's reorganization, CIGNA has argued that the Pennsylvania Commonwealth Court is the only forum where critics may object to the transaction, the attorney said in court papers filed last month.

But CIGNA argues in Pennsylvania Commonwealth Court that the state insurance commissioner's Feb. 7 order approving the insurer's reorganization into an active operation and a separately capitalized runoff facility for 80% of its...

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