Northland Insurance Sues PMA Capital for $1.3 Million

MINNEAPOLIS - Northland Insurance Co. is suing PMA Capital Insurance Co. in Minnesota federal court, demanding $1.3 million in reinsurance proceeds. Northland Insurance Co., et al. v. PMA Capital Insurance Co., No. 0:09-cv-03075 (D. Minn.).

The Nov. 3 complaint, filed in the U.S. District Court for the District of Minnesota, accuses PMA of refusing to pay Northland's billings under a multi-line excess-of-loss reinsurance treaty, despite PMA's acceptance and retention of treaty premiums paid by Northland.

According to the suit, Northland was reinsured by PMA under a multi-line excess-of-loss reinsurance treaty that incepted on July 1, 2001. Northland alleges that it …