Reinsurer Must Indemnify Insurer For Expenses, New York Federal Judge Says
(January 21, 2016, 1:14 PM EST) -- ALBANY, N.Y. — A reinsurer must indemnify an insurer for settlement expenses incurred in settling asbestos bodily injury claims filed against an insured because the follow-the-settlement doctrine applies and the insurer’s billings are clearly within the scope of coverage under the reinsurance certificates, a New York federal judge said Jan. 20 (Utica Mutual Insurance Co. v. Clearwater Insurance Co., No. 13-1178, N.D. N.Y.; 2016 U.S. Dist. LEXIS 6219).
(Opinion available. Document #03-160127-001Z.)
Utica Mutual Insurance Co. sued Clearwater Insurance Co. on Sept. 20, 2013, in the...