Mich. Federal Judge Awards Cedent Partial Summary Judgment on Liability Limits Issue

DETROIT — A Michigan federal judge has awarded Amerisure Mutual Insurance Co. partial summary judgment in an asbestos reinsurance coverage dispute, ruling that its reinsurer’s payments for loss expenses do not count against the facultative certificates’ liability limits.

However, in the Nov. 23 order, Judge Stephen J. Murphy III of the U.S. District Court for the Eastern District of Michigan denied the parties’ summary judgment motions as to whether Transatlantic Reinsurance Co. may rescind the reinsurance certificates due to late notice and Amerisure’s alleged failure to disclose information concerning asbestos products made by its insured, Armstrong Machine Works.

The judge …