Maiden Re Says Cedent Breached Numerous Reinsurance Treaty Provisions

LOS ANGELES — Maiden Reinsurance North America Inc. asserts that California Capital Insurance Co. breached several provisions of a reinsurance treaty, therefore the insurer is unable to recoup sums it paid to resolve underlying habitability, trucking and livery claims.

In a Sept. 2 opposition to CIG’s motion for partial summary judgment, Maiden Re told Judge Philip S. Gutierrez of the U.S. District Court for the Central District of California that California Capital improperly allocated its losses arbitrarily or tactically to maximize its reinsurance recovery.

Maiden Re reinsured CIC and its underwriting companies, Eagle West Insurance Co., Monterey Insurance Co. and …