STORY FROM: Reinsurance & Arbitration
Munich Not Required to Pay Defense Expenses, N.Y. Federal Judge Rules
April 3, 2019
UTICA, N.Y. — A New York federal judge has ruled that Munich Reinsurance America Inc. did not breach a reinsurance agreement by refusing to pay its share of $2.76 million in defense expenses that Utica Mutual Insurance Co. incurred in connection with asbestos claims filed against its policyholder, Goulds Pumps Inc.
In a March 29 order, Judge Brenda K. Sannes of the U.S. District Court for the Northern District of New York determined that the doctrines of follow-the-fortunes and follow-the-settlements were not implied in the reinsurance certificate. The judge further found that the reinsured umbrella policy did not require Utica ...
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