Excalibur Denies Liability for Travelers' $1.6 Million Settlement

HARTFORD, Conn. - Excalibur Reinsurance Corp. asserts that it is not obligated to reinsure Travelers Indemnity Co.'s $1.6 million settlement of errors and omissions claims brought against a broker in wake of the PA LMX Spiral. The Travelers Indemnity Co. v. Excalibur Reinsurance Corp., No. 3:11-1209 (D. Conn.).

In its Sept. 9 answer and counterclaims filed in the U.S. District Court for the District of Connecticut, Excalibur asserts that Travelers failed to back its claims with the proper documentation "despite its contractual obligation to allow Excalibur access to its files pertaining 'in any way' to the reinsurance treaties."

Travelers, …