Northern Assurance Demands $737,000 From Stronghold Insurance

BOSTON - In a newly-filed suit, Northern Assurance Company of America is demanding more than $737,000 in reinsurance proceeds from Stronghold Insurance Co. under a facultative reinsurance certificate. Northern Assurance Company of America v. Stronghold Insurance Company Ltd., No. 1:09-10948 (D. Mass.).

The complaint, filed June 4 in the U.S. District Court for the District of Massachusetts, alleges that Stronghold has wrongfully refused to pay its share of an underlying settlement of hazardous waste claims brought against the State of California.

According to the complaint, Stronghold had a 20 percent participation in a facultative certificate that reinsured a policy issued …