Cincinnati Financial Corp. announced that the Ohio Supreme Court’s recent reversal of its Scott-Pontzer decision could result in the release of approximately $75 million in uninsured motorist/underinsured motorist reserves. This amount would include some Cincinnati Insurance Co. reserves for losses incurred but not yet reported as well as case reserves for reported claims, including approximately $6 million in case reserves released in November 2003.
Because the court still must rule on motions to reconsider the reversal, the company believes it is premature to release all Scott-Pontzer-related reserves or specify the timing of their potential release. In the Nov. 5, 2003, decision, the court ruled that an employer’s commercial automobile insurance policy only covers injured employees and only when the accident happens in the course and scope of their employment. UM/UIM claims dating back as far as 15 years would be affected by the court’s recent decision.
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