Travelers Seeks to Bar Allstate from Prosecuting $1.25 Million Declaratory Judgment Action in Ill.

HARTFORD, Conn. - Travelers Casualty and Surety Co. has asked a Connecticut federal judge to enjoin Allstate Insurance Co. from prosecuting an Illinois action in which Allstate seeks a ruling that it does not owe Travelers $1.25 million in reinsurance proceeds.

In a Jan. 17 motion filed in the U.S. District Court for the District of Connecticut, Travelers says Allstate improperly filed the Illinois case in response to Travelers' threat of filing a breach of contract action in Connecticut.

Travelers issued a number of insurance policies to PPG Industries Inc., formerly Pittsburgh Plate Glass Co. Certain of those policies …