Amerisure Says Reinsurance Certificates Do Not Cap Reinsurer’s Liability

DETROIT — Amerisure Mutual Insurance Co. is urging a federal judge to rule that reinsurance certificates do not cap Transatlantic Reinsurance Co.’s liability for underlying asbestos claims and that the reinsurer is obligated to reimburse Amerisure for defense expense costs in addition to settlements or judgments.

In an Aug. 5 reply brief filed in the U.S. District Court for the Eastern District of Michigan, Amerisure notes that the 2nd Circuit U.S. Court of Appeals has rejected “a presumptive cap” and ruled that courts must consider the terms of the facultative certificates as a whole, and, where facultative certificates are following …