Westport Insurance Prevails in Follow-The-Fortunes Suit

HARTFORD, Conn. - A Connecticut federal judge has granted Westport Insurance Corp.'s motion for judgment on the pleadings, ruling that it is not obligated to reinsure an underlying settlement of a lawsuit brought against a real estate investment company. Arrowood Surplus Lines Insurance Co. v. Westport Insurance Corp., No. 3:08-CV-01393 (D. Conn.).

On Jan. 7, Judge Alvin W. Thomson of the U.S. District Court for the District of Connecticut ruled that the underlying policies issued by Arrowood Surplus Lines Insurance Co. became effective after the reinsurance coverage terminated, therefore Westport is not obligated to fund the settlement.

In December 1999, …