Lexington, R&Q, Settle Dispute Over Reinsurance Proceeds for Asbestos Losses

BOSTON — Lexington Insurance Co. and R&Q Reinsurance Co. have resolved their dispute involving a claim for reinsurance proceeds for underlying asbestos-related losses.

According to a Feb. 12 dismissal order filed in the U.S. District Court for the District of Massachusetts, the parties have entered into a settlement agreement.

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. R&Q assumed $3,333,333 part of $10 million, each occurrence and annual aggregate, of the Lexington policy.

GRC …