Chubb Insurer Demands $805,398 in Reinsurance Proceeds for Underlying Asbestos Settlement

PHILADELPHIA — A Chubb insurer has sued RLI Insurance Co. under a facultative reinsurance certificate for contribution toward a settlement of asbestos claims filed against automotive parts manufacturer Echlin Inc., arguing that the contract’s “follow the settlements” provision is binding.

In a complaint removed to the U.S. District Court for the Eastern District of Pennsylvania on May 3, Pacific Employers Insurance Co. (PEIC) further contends that the facultative certificate requires RLI to promptly pay its portion of loss and expense following receipt of proof of loss.

The action is pending before Judge Michael M. Baylson.

PEIC issued two one-year …