Westport Denies Liability to Arrowood For $6.8 Million

HARTFORD, Conn. - Westport Insurance Corp. maintains that it is not liable to indemnify Arrowood Surplus Lines Insurance Co. $6.8 million for the settlement of an underlying coverage action brought by a real estate investment company. Arrowood Surplus Lines Insurance Co. v. Westport Insurance Corp., No. 3:08-CV-01393 (S.D. N.Y.).

In its Nov. 14 answer, filed in the U.S. District Court for the Southern District of New York, Westport asserts that the settlement relates to claims that fall outside of the reinsurance coverage period.

In December 1999, Arrowood's predecessor, Connecticut Specialty, issued a general liability policy to Equity Residential, a trust …