Conn. Judge Enforces Settlement Between Excalibur, Travelers; Orders Excalibur to Pay Sanctions

HARTFORD, Conn. — A Connecticut federal judge has enforced a $217,800 reinsurance settlement agreement between Excalibur Reinsurance Corp. and The Travelers Indemnity Co., and ordered Excalibur to pay sanctions in the form of attorneys’ fees and interest.

On March 19, Judge Alvin W. Thompson of the U.S. District Court for the District of Connecticut ruled that Excalibur’s delay in paying the agreed upon settlement amount constituted bad faith because Excalibur had more than $100 million in assets and $7 million immediately-available cash on hand.

Travelers’ predecessor, Gulf Insurance Co., issued errors and omissions policies to various entities. These E&O …