Parties Dispute Retention Application in Ala. Federal Reinsurance Case

MONTGOMERY, Ala. — The parties in a dispute over reinsurance coverage for costs incurred by a municipal insurer in defending a lawsuit filed against one of its member towns have briefed their arguments, with Alabama Municipal Insurance Corp. (AMIC) asserting that the two wrongful acts at issue constitute a single wrongful act under the reinsured policy, therefore only one retention should have been applied.

But in its own brief filed before Judge Myron H. Thompson of the U.S. District Court for the Middle District of Alabama, Munich Reinsurance America Inc. argues that the loss was properly ceded to the two …