R&Q Disclaims Liability for 2007 Asbestos Settlement

HARTFORD, Conn. - R&Q Reinsurance Co. says it is not liable to provide $8.5 million in reinsurance coverage to Travelers Casualty and Surety Co. for an underlying settlement of asbestos claims because the settlement was outside the scope of the reinsured policies. Travelers Casualty and Surety Co. v. R&Q Reinsurance Co., No. 10-1946 (D. Conn.).

In an answer filed in the U.S. District Court for the District of Connecticut, R&Q asserted nine affirmative defenses, which include breach of the duty of utmost good faith and breach of contract.

According to Travelers' complaint, R&Q and several other reinsurers subscribed to a …