Maiden Re Says Cedent Improperly Billed $16.9 Million Under Treaty

LOS ANGELES — A reinsurer has asserted a breach of contract counterclaim against California Capital Insurance Co. (CIG) in a battle over reinsurance coverage for habitability, trucking and livery claims, asserting that CIG has improperly billed $16.9 million under the parties’ treaty.

In an answer filed in the U.S. District Court for the Central District of California, Maiden Reinsurance North America Inc. (now known as Fletcher Reinsurance Co.) accuses CIG of breaching various treaty provisions by submitting the reinsurance billings in bad faith.

Maiden Re reinsured CIC and its underwriting companies, Eagle West Insurance Co., Monterey Insurance Co. and Nevada …