Select Insurance Asks Court to Impose Pre-Pleading Security on Excalibur in Retrocessional Dispute

HARTOFRD, Conn. — Select Insurance Co. has asked a Connecticut federal court to require Excalibur Reinsurance Corp. to post pre-pleading security before answering a complaint in which Select demands $1.1 million in retrocessional proceeds.

In a May 26 motion filed in the U.S. District Court for the District of Connecticut, Select asserts that a pre-pleading order is required by state law because Excalibur is not a licensed reinsurer in Connecticut.

Select reinsured policies issued by Gloucester Insurance Ltd. and RAM IIC Inc. to the accounting firm of Ernst & Young.

Select then obtained retrocessional coverage for its risk. The retrocessional …