Ariz. Hotel Opposes Reinsurer’s Bid to Dismiss Federal ‘Cut-Through’ Action

PHOENIX — A Phoenix hotel has opposed Hartford Steam Boiler Inspection and Insurance Co.’s motion to dismiss its action demanding coverage for extensive flood damage caused by an air conditioning system, arguing that the reinsurer’s conduct renders it liable for the loss.

In a March 8 filing in the U.S. District Court for the District of Arizona, Midtown Hotel LLC argues that after Hartford accepted coverage for its loss, the reinsurer “deliberately asserted control over handling” of the claim; therefore, it cannot argue that it is not a proper party to the action.

Midtown sued its insurer, Selective Insurance Company …