R&Q Seeks Ruling That it Is Not Obligated to Pay St. Paul’s $4.4 Million Reinsurance Billing

CHICAGO — R&Q Reinsurance Co. seeks a ruling that it is not obligated to pay a $4.4 million reinsurance billing because its cedent, St. Paul Fire & Marine Insurance Co., breached the reinsurance certificate’s “notice of occurrence” provision by failing to timely notify R&Q of asbestos-related claims brought against its insured.

In a Sept. 3 complaint filed in the U.S. District Court for the Northern District of Illinois, R&Q asserts that it was significantly prejudiced by St. Paul’s late notice.

Effective Dec. 1, 1979, R&Q Reinsurance Co. and St. Paul Fire & Marine Insurance Co., through intermediary Guy Carpenter & …