Allstate Life Insurance v. Commonwealth, 52 A.3d 1077

Allstate Life Insurance seeks tax credits for Guaranty Association assessments; issue is whether annuity-related assessments can be offset under §991.1711(b).
Guaranty Act requires assessments to fund the Association; offsets are 20% annually for five years, or credit upon ceasing business.
The numerator/denominator formula in §991.1711(b) governs the tax credit calculation; controversy centers on including annuities.
Commonwealth Court found ambiguity and included annuity premiums in the numerator; Department contested, Allstate appealed.
The Court reviews de novo statutory interpretation, considering context and canons, given the ambiguity, with two lines of opinion (affirmance vs reversal).
Because the Court was evenly divided, the Commonwealth Court’s order was affirmed by operation of law.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether annuities are included in the numerator of §991.1711(b).	Allstate argues annuities must be included to avoid illusory credit.	Department contends annuities are not included; plain language excludes them from the numerator.	Ambiguity acknowledged; order affirmed by operation of law.

Allstate Life Ins. Co. v. Commonwealth, 992 A.2d 910 (Pa.Cmwlth.2010) (decisions on proportionate part factor; inclusion of annuities debated)
Commonwealth v. Davidson, 938 A.2d 198 (Pa.2007) (statutory intent and interpretation principles)
O'Rourke v. Commonwealth, 778 A.2d 1194 (Pa.2001) (read statutes in context; avoid isolated interpretation)
Mohamed v. Commonwealth, Dep’t of Transp., 40 A.3d 1186 (Pa.2012) (avoid inserting omissions; plain language governs)
Commonwealth v. Shafer, 202 A.2d 308 (Pa.1964) (no supply of omissions when legislature omitted terms)