Reinsurer May Not Question Cedent's Allocation, Judge Says

HARTFORD, Conn. - A Connecticut federal judge on June 24 affirmed her earlier ruling that a "follow-the-fortunes" clause precludes a reinsurer from questioning a cedent's allocation of underlying non-products asbestos claims. Hartford Accident and Indemnity Co. v. Argonaut Insurance Co., No. 3:06CV1813 (D. Conn.).

U.S. District Judge Holly B. Fitzsimmons reiterated her denial of Argonaut Insurance Co.'s motion to compel documentation concerning insurance and reinsurance coverage for Foster Wheeler Corp.'s asbestos liabilities.

Argonaut reinsured a policy issued by Hartford Accident and Indemnity Co. to Foster Wheeler for the period October 1974 through October 1975. Under the facultative certificate, Hartford retained …