Clearwater Says Utica May Not Seek Defense Expenses Beyond Reinsurance Certificates’ Limits

UTICA, N.Y. — In a reinsurance dispute pending in New York federal court, Clearwater Insurance Co. is asserting that Utica Mutual Insurance Co. may not submit reinsurance billings for defense costs that exceed the liability limits of the reinsurance certificates.

In moving for partial summary judgment on the issue, Clearwater argued to the U.S. District Court for the Northern District of New York that 2nd Circuit precedent bars Utica from collecting expenses above and beyond the certificates clearly-stated limits.

Utica, however, asserts that the certificates contain no such limits and that the certificates cover both indemnity and defense expenses. …