R&Q Asks Judge to Alter Ruling Allowing Wausau to Include Defense Expenses in Reinsurance Billings

MADISON, Wis. — R&Q Reinsurance Co. is urging a Wisconsin federal judge to alter her ruling allowing Employers Insurance Company of Wausau to combine indemnity and defense expenses in order to meet its retention under a reinsurance certificate.

In a motion filed in the U.S. District Court for the Western District of Wisconsin, R&Q says neither the reinsurance certificate nor the reinsured policy allows defense expenses to be considered a “loss” that is paid in addition to the policy’s limits of liability.

R&Q issued two one-year facultative reinsurance certificates to Wausau numbered 03 75 76 and 04 67 99, which …