Pennsylvania Underwriter Denied Rehearing in Surplus Fund Battle

Pennsylvania can continue its efforts to claim $300 million in surplus funds built up by the state’s medical professional liability insurance underwriter after a federal appeals court declined to rehear a suit challenging various state attempts to access the money.

None of the judges who rejected the underwriter’s suit to stop Pennsylvania from adding the money to the state budget sought a rehearing, and a majority of the court’s active judges declined to ask for en banc review, the US Court of Appeals for the Third Circuit said in a brief order Wednesday.

A three-judge panel held in December 2024 ...