Travelers Urges Court to Impose Sanctions on Excalibur for Delay in Paying Settlement

HARTFORD, Conn. —The Travelers Indemnity Co. (NYSE: TRV) has asked a Connecticut federal court to impose bad faith sanctions on Excalibur Reinsurance Corp. for its allegedly inexcusable delay in paying a $217,800 settlement agreement.

In its July 15 reply brief filed in the U.S. District Court for the District of Connecticut, Travelers asserts it is entitled to sanctions in the form of attorney’s fees and costs because the settlement agreement was a “time of the essence” contract.

Travelers’ predecessor, Gulf Insurance Co., issued errors and omissions policies to a variety of entities. These E&O policies were allegedly reinsured …