Interest Included in Judgment Not a ‘Loss’ Under Reinsurance Certificate, N.Y. Federal Judge Rules
October 28, 2013
NEW YORK — More than $2.4 million in interest included in a judgment against Seneca Insurance Co.’s policyholder is “interest on a judgment” as defined by a reinsurance certificate, therefore Seneca’s loss does not reach the certificate’s $5 million attachment point, a New York federal judge has ruled.
On Oct. 18, Judge Katherine Forrest of the U.S. District Court for the Southern District of New York concluded that Everest Reinsurance Co. is not obligated to reimburse Seneca for the judgment. The judge granted Everest’s motion for summary judgment.
Everest Re issued a facultative certificate to Seneca, effective Nov. 1, 1997, …
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