Cedent Seeks Reconsideration of $1 Million Cap Ruling

PHILADELPHIA - Pacific Employers Insurance Co. is asking a federal judge to reconsider his ruling that a $1 million cap in a facultative reinsurance certificate 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 in April that PEIC's expenses are subject to the $1 million limit stated in …