2nd Cir. Sides with Reinsurers on Defense Costs Issue in Goulds Pumps Case
July 30, 2021
NEW YORK — A federal appellate panel has found in favor of reinsurers Munich Reinsurance America Inc. and Century Indemnity Co. on the issue of whether they were obligated to pay a cedent’s defense costs above the limits established in an umbrella policy covering Goulds Pumps Inc.’s asbestos liabilities.
In a July 29 opinion, the 2nd Circuit U.S. Court of Appeals panel held that the reinsurance certificates issued to Utica Mutual Insurance Co. reinsured defense costs within limits, not in addition.
In 1973, Utica issued a $300,000 primary policy to Goulds for defense and indemnity of personal-injury and other claims …
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