$1 Million Cap Applies to Cedent's Expenses, Judge Rules

PHILADELPHIA - A $1 million cap in a facultative reinsurance certificate issued by Global Reinsurance Corporation of America encompasses expenses incurred in connection with the underlying policy, a Pennsylvania federal judge ruled April 23. Pacific Employers Insurance Co. v. Global Reinsurance Corporation of America, No. 09-06055 (E.D. Pa.).

In a case involving reinsurance coverage for asbestos injury claims brought against Buffalo Forge Co., Judge Robert F. Kelley of the U.S. District Court for the Eastern District of Pennsylvania ruled that Pacific Employers Insurance Co.'s expenses are subject to the $1 million limit stated in the "reinsurance accepted" section of the …