OneBeacon Denies Liability for $1.7 Million Reinsurance Claim Arising from ASARCO Asbestos Settlement

NEW YORK — In response to Fireman’s Fund Insurance Co.’s demand for $1.7 million in reinsurance for an underlying asbestos settlement, OneBeacon Insurance Co. asserts that Fireman’s Fund breached the terms of the certificate; therefore it is not obligated to pay the billing.

In its Aug. 11 answer filed in the U.S. District Court for the Southern District of New York, OneBeacon says it is not obligated to fund the ASARCO Trust settlement because Fireman’s Fund allocated the settlement payments in bad faith and failed to provide OneBeacon with proofs of loss as required by the reinsurance certificate.

According to …