Continental Sues Munich Re for $4.7 Million in Allocated Loss, Declaratory Judgment Expenses

NEW YORK — Continental Insurance Co. has sued Munich Reinsurance America in New York federal court, seeking $4.7 million in allocated loss and declaratory judgment expenses arising from Continental’s settlement of underlying environmental claims asserted against its insured.

In a June 8 complaint filed in the U.S. District Court for the Southern District of New York, Continental maintains that Munich Re has waived its argument that its obligation to pay such expenses is capped under the reinsurance certificate at issue.

Continental provided $1 million in primary layer liability coverage to Menasha Corp. from Jan. 1, 1985, through Jan. 1, 1986. …