Northern Assurance Demanding Investigative Costs from Century Indemnity

BOSTON - Northern Assurance Company of America has sued Century Indemnity Co., seeking reimbursement under a facultative reinsurance certificate for costs Northern incurred in investigating underlying environmental claims brought against Pacific Gas & Electric Co. (NYSE: PCG).

According to a Sept. 21 complaint filed in the U.S. District Court for the District of Massachusetts, Century owes 233,631 under the certificate.

According to the suit, Northern’s predecessor, Employers’ Surplus Lines Insurance Co., issued an excess policy to PG&E, effective Feb. 28, 1969, to Feb. 28, 1972. The policy contained a “control of claims” clause, which, upon PG&E’s request, gave the insurer …