R&Q Says it is Not Liable for Cedent’s Defense Costs Arising from Asbestos Settlement

MADISON, Wis. — In response to Employers Insurance Company of Wausau’s demand for more than $520,000 in reinsurance for its settlement of underlying asbestos claims, R&Q Reinsurance Co. contends the reinsurance billing consists of uncovered defense, rather than indemnity or settlement costs.

In its Nov. 27 answer and counterclaim, filed in the U.S. District Court for the Western District of Wisconsin, R&Q contends that only sums paid by Wausau in relation to indemnity or settlement costs, as opposed to legal or defense costs, may be used to determine the reduction of Wausau’s retention.

According to the suit, R&Q issued …