Three years after taking over Reliance Insurance Co., the Pennsylvania Insurance Department is attempting to raise cash by selling properties of the failed company. Reliance Insurance faces a $3 billion shortfall between more than 100,000 claims filed by customers and the assets the company has to pay such claims, the department said. The state took over Reliance in May 2001, after the 184-year-old property casualty insurer had run out of money. The state hopes to collect millions from former Reliance Group owner Saul P. Steinberg, his officers, directors, lawyers and auditor, and their insurers. Since Jan. 1, the state has collected $55.5 million from the sale of RCG Moody International Ltd.; $5.3 million from the sale of Reliance National Asia Re Ltd. of Singapore; and $11.5 million from sales of shares of Symbol Technologies. In addition to the sales of properties, the state is trying to collect from big corporations it says owe Reliance money, including $36 million from John Hancock Life; $34 million from U.S. Airways; and $13 million from Agway Inc.
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