WASHINGTON—A risk retention group which insures taxicabs primarily in Pennsylvania and New Jersey has been placed in liquidation, setting off a scramble by cab owners to find new insurance.
An order placing First Keystone Risk Retention Group Inc., a commercial auto insurance company organized and licensed in South Carolina, was signed Oct. 21 by a South Carolina judge, setting off a scramble by taxicab medallion owners in Philadelphia to find new insurance.
The failure is interesting because the insolvency and liquidation of a risk retention group is rare, with only two or three winding up being taken over annually, according to Michael J. FitzGibbons, of FitzGibbons and Company, Inc., Scottsdale, Ariz. Fitzgibbons has been assigned to handle the liquidation. And, unlike most property and casualty insurance companies, there are no guaranty funds available to help pay off claims.
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