TIG Not Required to Show Prejudice Before Denying Reinsurance Claim, N.Y. Judge Rules

NEW YORK – A New York federal judge has ruled that TIG Insurance Co. is not required to prove it was prejudiced by AIU Insurance Co.’s untimely notice of its settlement of asbestos claims before denying AIU’s $12.3 million reinsurance claim.

On March 25, Judge Sidney Stein of the U.S. District Court for the Southern District of New York adopted a magistrate judge’s findings that Illinois law governs the reinsurance certificates at issue.

Since the late 1970s, hundreds of thousands of asbestos claims have been filed against Foster Wheeler. Foster Wheeler settled with its direct and excess insurers, including AIU. …