Cedent Sues Century Indemnity for $1.6 Million

NEW YORK - Appalachian Insurance Co. sued its reinsurer in New York federal court on July 15, seeking nearly $1.6 million in contribution toward a 2004 settlement of underlying asbestos injury claims. Appalachian Insurance Co. v. Century Indemnity Co., No. 08-6361 (S.D. N.Y.).

Appalachian Insurance Co. seeks a ruling from the U.S. District Court for the Southern District of New York that it is owed payment under two facultative reinsurance certificates issued by Century's predecessor, Insurance Company of North America.

The suit says that INA reinsured certain excess liability policies issued by Appalachian to Dresser Industries Inc. in the 1970s. …