R&Q Says it Does Not Owe Lexington Reinsurance Proceeds for Underlying Asbestos Losses

BOSTON — In response to Lexington Insurance Co.’s demand for reinsurance proceeds for underlying asbestos-related losses, R&Q Reinsurance Co. asserts that Lexington breached the facultative certificate by providing untimely notice of the loss and making ex gratia payments.

In its Dec. 22 answer filed in the U.S. District Court for the District of Massachusetts, R&Q further argues that Lexington failed to prove exhaustion of all underlying policies.

Lexington issued GRC an insurance policy that was in effect from Feb. 1, 1979, to Aug. 1, 1980. This policy was allegedly reinsured under a facultative certificate issued by R&Q’s predecessor, INA …