Trenwick Reinsurance Facility Included in Commutation, Conn. Court Affirms

HARTFORD, Conn. - A commutation agreement encompassed a casualty and accident reinsurance facility reinsured by Trenwick America Reinsurance Corp., therefore Trenwick is relieved of its payment obligations under the facility, a Connecticut appellate court has affirmed.

The court also ruled, however, that Trenwick cannot recover sums it voluntarily paid after execution of the commutation agreement because the parties stood "on equal footing" with regard to knowledge of their respective contractual obligations.

Trenwick and W.R. Berkley subsidiary Signet Star Reinsurance Co. entered into a special casualty and accident reinsurance facility (SCARF II), effective Jan. 1, 1999. Under this agreement, Signet Star …