Northern Assurance, Century Indemnity Settle Dispute Over Reinsurance for Investigative Costs

BOSTON — Northern Assurance Company of America and Century Indemnity Co. have settled a dispute over reinsurance coverage for $233,631 in costs incurred by Northern in investigating underlying environmental claims brought against Pacific Gas & Electric Co. (NYSE: PCG).

Judge F. Dennis Saylor IV of the U.S. District Court for the District of Massachusetts dismissed the action without prejudice on Dec. 3.

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 Northern “full charge of …