Sentry Breached Notice Provisions in Reinsurance Contracts, R&Q Asserts in New Suit

CHICAGO — R&Q Reinsurance Co. seeks a declaration that it is not obligated to indemnify Sentry Insurance under two facultative reinsurance certificates because Sentry breached the certificates’ notice provisions by failing to promptly advise R&Q of underlying asbestos- and fire-related losses.

In a Dec. 7 complaint filed in the U.S. District Court for the Northern District of Illinois, R&Q asserts that Sentry knew of the underlying losses as early as 1990 and 1996.

According to the complaint, R&Q’s predecessor, INA Reinsurance Co., issued Sentry a facultative certificate effective Jan. 1, 1978, to Jan. 1, 1979, which covered a Sentry umbrella …