Interest Not Covered Under Everest Re Reinsurance Certificate, 2nd Cir. Affirms

NEW YORK — More than $2.4 million in interest included in a judgment against Seneca Insurance Co.’s policyholder is “interest on a judgment” as defined by a reinsurance certificate, therefore Seneca’s loss does not reach the certificate’s $5 million attachment point, a federal appeals court has affirmed.

In an Oct. 16 summary order, the 2nd Circuit U.S. Court of Appeals upheld a federal judge’s ruling that Everest Reinsurance Co. is not obligated to reimburse Seneca for the judgment.

Everest Re issued a facultative certificate to Seneca, effective Nov. 1, 1997, which reinsured a directors and officers liability policy issued …