Follow-The-Settlements Bars OneBeacon from Denying $1.7 Million Reinsurance Claim, Fireman’s Fund Asserts

Follow The Settlements

NEW YORK — Fireman’s Fund Insurance Co. has moved for summary judgment in its $1.7 million lawsuit against reinsurer OneBeacon Insurance Co., asserting that its allocation of underlying asbestos losses to its reinsured policy was reasonable and in good faith.

In its July 2 motion filed in the U.S. District Court for the Southern District of New York, FFIC argues that the reinsurance certificate’s follow-the-settlements provision bars OneBeacon from denying FFIC’s claim for reimbursement.

FFIC issued three one-year excess umbrella liability policies to ASARCO Inc. The first policy (Policy 1) was effective from March 15, 1982, to …