Lloyds Accused of Breaching Reinsurance Contract in $2.65 Million Lawsuit

MISSOULA, Mont. — Certain Underwriters at Lloyds has been accused of breaching a reinsurance contract issued to a Montana risk pool by refusing to reimburse them $2.65 million for the settlement of an underlying wrongful conviction lawsuit.

In a Dec. 5 complaint filed in the U.S. District Court for the District of Montana, the Montana Association of Counties Property and Casualty Trust says Lloyds must reimburse it under the reinsurance contract’s “follow the fortunes” language.

The trust represents a group of Montana counties which formed a joint risk pool to provide a pooled fund for indemnification of its members against …