Munich Re Liable For Underlying Property Damage Claim, Judge Rules

TRENTON, N.J. - A New Jersey federal judge has ruled that Munich Reinsurance America Inc. must reimburse a cedent for a property damage claim pursuant to an excess of loss reinsurance agreement because the reinsurer is liable for claims that fall within the underlying policy's extended coverage period. Munich Reinsurance America Inc. v. Tower Insurance Company of New York, No. 09-2598 (D. N.J.).

In a Dec. 23 opinion, Judge Freda L. Wolfson further ruled that the cedent, Tower Insurance Company of New York, was required by the parties' quota share agreements to include a lead exclusion in comprehensive general liability …