Selective Insurance Dismissed from Superstorm Sandy Flood Payment Dispute

TRENTON, N.J. — A federal judge has granted a motion by Selective Insurance Co. of America to interplead funds from a Superstorm Sandy flood claim and dismissed the insurer from a dispute among two relatives who both claim they are the rightful owner of the proceeds.

In a Feb. 20 decision, Judge Freda L. Wolfson of the U.S. District Court for the District of New Jersey rejected allegations that Selective ran afoul of federal flood insurance guidelines when it assigned both relatives as beneficiaries of the flood insurance claim. As a result, Judge Wolfson concluded, the insurer played no …