Republic Insurance Sued for $456,680 in Reinsurance Proceeds

HARTFORD, Conn. - Travelers Casualty and Surety Co. is seeking $456,680 in reinsurance proceeds from Republic Insurance Co. for a 2007 settlement of asbestos claims brought against Armstrong Contracting and Supply Co. Travelers Casualty and Surety Co. v. Republic Insurance Co., No. 11-214 (D. Conn.).

The Feb. 8 complaint filed in the U.S. District Court for the District of Connecticut says Republic may not "second-guess" Travelers' settlements with policyholders.

Republic allegedly subscribed to a series of reinsurance treaties that comprised Travelers' blanket excess of loss program. The program incepted in 1962 and was renewed annually. In each year, different reinsurers …