Steelworkers Union Sues Insurer Over Claims

The United Steelworkers union has asked a court to forbid Prudential Insurance Co. from refusing to pay health benefits claims to employees of Wheeling-Pittsburgh Steel Corp., which has filed for bankruptcy court protection from creditors.

The union filed suit in Westmoreland County Common Pleas Court seeking to force Prudential to pay claims for sickness, accident, dental, visual or life benefits.

Prudential has refused to pay any claims filed before the steelmaker entered its Chapter 11 bankruptcy court petition on April 16.

Paul Rusen, a union official, said Pennsylvania Blue Cross and Blue Shield had continued to pay insurance claims of the steel company’s employees.