2nd Cir. Hears Parties’ Arguments in Reinsurance Allocation Dispute

NEW YORK — The 2nd Circuit U.S. Court of Appeals has held a hearing in a case in which Equitas Insurance Ltd. seeks to overturn a $7.2 million reinsurance judgment issued in favor of The Insurance Company of the State of Pennsylvania (ICSOP) in a case involving coverage for environmental pollution at a site owned by a Dole Food Co. subsidiary.

During the Dec. 1 hearing, Equitas argued the reinsurance certificates at issue are governed by English law; therefore, the cedent could not allocate payment for 44 years of property damage to the certificates’ three-year period. The U.S. District Court …