Conn. Federal Judge Orders Excalibur to Post Pre-Pleading Security in Dispute with Travelers

HARTFORD, Conn. — A Connecticut federal judge has ordered Excalibur Reinsurance Corp. to post pre-pleading security in its reinsurance dispute with The Travelers Indemnity Co., explaining that Excalibur is an “unauthorized insurer” as defined by Connecticut’s pre-pleading security statute.

On March 11, Senior Judge Charles S. Haight Jr. of the U.S. District Court for the District of Connecticut further ruled that, when read together with Federal Rule 64(a) of Civil Procedure, Travelers is entitled to an order requiring Excalibur to post the security.

Two insurers sued an insurance/reinsurance broker for losses they allegedly sustained in connection with the PA LMX …