OneBeacon Must Pay $1.74 Million Reinsurance Claim, 2nd Cir. Affirms

NEW YORK — A 2nd Circuit U.S. Court of Appeals panel has affirmed that OneBeacon Insurance Co. must contribute toward a $35 million settlement of asbestos claims filed against a mining company because the cedent’s allocation did not breach the reinsured policy’s exhaustion provision.

In a Sept. 15 opinion, the appellate panel concluded that the underlying policies could be exhausted by a below-limits settlement and the reinsured policy would provide coverage, as long as the policyholder’s total covered losses exceeded the policy’s attachment point.

Because the underlying losses exceeded the reinsured policy’s attachment point, Fireman’s Fund Insurance Co. (FFIC) could …