Allstate, Transatlantic Battle Over Coverage for Asbestos Claims

CHICAGO - Allstate Insurance Co. is battling Transatlantic Reinsurance Co. in Illinois federal court over whether underlying asbestos claims were misallocated and are partially excluded under two consecutive facultative reinsurance certificates issued to Allstate's predecessor. Allstate Insurance Co. v. Transatlantic Reinsurance Co., No. 1:08-cv-04173 (N.D. Ill.).

In a Sept. 2 reply brief, Allstate wholly denies Transatlantic's allegations that it misallocated the claims for the purpose of avoiding exclusionary endorsements to a 1982 certificate. The action, originally filed by Allstate in the Cook County (Ill.) Circuit Court, was removed by Transatlantic on July 23 to the U.S. District Court for the …