Reinsurer Disclaims Liability for Hotel Owner’s Losses in Ariz. ‘Cut-Through’ Action

PHOENIX — Reinsurer Hartford Steam Boiler Inspection and Insurance Co. has answered a Phoenix hotel owner’s amended complaint against itself and insurer Selective Insurance Company of America, which demands coverage for extensive flood damage caused by an air conditioning system that malfunctioned.

In a Jan. 30 filing in the U.S. District Court for the District of Arizona, Hartford flatly denies Midtown Hotel Group LLC’s allegations that it is contractually liable for the claim because it controlled decisions regarding payment and settlement of the claim.

Hartford also asserted several affirmative defenses, asserting that Midtown’s claims may be barred and/or limited by …