N.J. Judge Orders Converium To Follow $4.4M Settlement

Follow-the-settlements

N.J. Judge Orders Converium To Follow $4.4M Settlement

TRENTON, N.J. - Converium Reinsurance (North America) Inc. is bound to a cedent's $4.4 million settlement of underlying employer liability claims because the ultimate net loss exceeded the reinsurance treaty's retention, a New Jersey federal judge ruled March 27. Princeton Insurance Co. v. Converium Reinsurance (North America) Inc., No. 06-599, D. N.J.).

Applying New Jersey law, Judge Mary L. Cooper of the U.S. District Court for the District of New Jersey found that the treaty's warranty provision does not limit the amount of loss that can be ceded to the …