Home Liquidator Sues North Star for $2.2 Million

NEW YORK - The liquidator of The Home Insurance Co. has sued North Star Reinsurance Corp. in New York federal court, seeking $2.2 million in reinsurance proceeds for the settlement of underlying environmental claims. Sevigny v. North Star Reinsurance Corp., No. 09-7428 (S.D. N.Y.).

The Aug. 24 complaint, filed in the U.S. District Court for the Southern District of New York by New Hampshire Insurance Commissioner Roger A. Sevigny, accuses North Star of breaching a facultative reinsurance certificate issued to Home in the late 1960s.

Beginning in 1963, Home issued insurance policies to the Marmon Group Inc. and its …