P&CPennsylvaniamedium
When a PA-domiciled insurer is found to be insolvent, who is appointed as receiver to rehabilitate or liquidate the company under Article V of PA's insurance code (40 P.S. § 221.1+)?
AA federally chartered receiver appointed by the FDIC
BThe Pennsylvania Attorney General
The PA Insurance Commissioner
DA private trustee selected by the insolvent insurer's board
Why this is the answer
Under Article V (40 P.S. § 221.1+), the Commonwealth Court appoints the PA Insurance Commissioner as receiver to rehabilitate or liquidate an insolvent PA-domiciled insurer. The FDIC handles bank insolvencies, not insurers. The Attorney General prosecutes crimes and represents the Commonwealth in litigation but does not run insurer receiverships. Private trustees do not have statutory receivership authority over PA insurers.
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