STORY FROM: Reinsurance & Arbitration
Hartford Not Liable For G-I Holdings' Losses, Court Affirms
November 3, 2009
PHILADELPHIA - An asset purchase agreement and a quota share reinsurance agreement did not obligate Hartford Fire Insurance Co. to step into the shoes of an insolvent insurer and provide defense for three fraudulent conveyance actions, the 3rd Circuit U.S. Court of Appeals has affirmed. G-I Holdings Inc. v. Reliance Insurance Co., et al., No. 07-2510 (3rd Cir.).
The appellate court, on Oct. 26, ruled that the underlying actions constitute a single claim that was first made before the inception of the Hartford policy and that Hartford did not assume the insolvent insurer's policy.
G-I Holdings Inc. purchased an officers ...