Lexington Demands Reinsurance Proceeds From R&Q for Underlying Asbestos Losses

BOSTON — Lexington Insurance Co. is demanding payment from R&Q Reinsurance Co. under a reinsurance certificate for underlying asbestos-related losses sustained by its policyholder General Refractories Co.

In a Dec. 2 complaint filed in the U.S. District Court for the District of Massachusetts, Lexington accuses R&Q of wrongfully refusing to pay the reinsurance billing, thereby breaching the facultative certificate.

Lexington issued GRC an insurance policy that was in effect from Feb. 1, 1979, to Aug. 1, 1980. This policy was allegedly reinsured under a facultative certificate issued by R&Q’s predecessor, INA Reinsurance Co.

“Pursuant to Facultative Certificate No. FRC 02 …