The headquarters of former Pennsylvania malpractice insurer PHICO Insurance Co. would be sold for $15 million -- a $15 million loss -- under a petition filed by state Insurance Commissioner Diane Koken with the Commonwealth Court. The sale is among the final elements of a liquidation of PHICO begun by Pennsylvania regulators in February 2002. The property includes a three-story office building and about 52 acres of land. Although the sale price exceeds the property's appraised market value, the PHICO Group -- the parent company of both PHICO and the Hospital & Healthsystem Association of Pennsylvania -- sold the property to the malpractice insurer for $30 million in 2000. State regulators sued 15 former PHICO officers and directors, alleging among other things that the transaction was "a fraudulent conveyance." The lawsuit was settled in November 2003 for $10 million. PHICO, once one of Pennsylvania's largest medical malpractice insurers, was $250 million in debt when state regulators began its liquidation. -- by Cinda Becker
Saga of Pa. malpractice insurer PHICO nears end
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