Pennsylvania Lumbermens Denies NICO’s Allegations in Neb. Federal Reinsurance Brawl

OMAHA, Neb. — Pennsylvania Lumbermens Mutual Insurance Co. has answered a third amended complaint in which National Indemnity Co. accused it of breaching a facultative reinsurance certificate by refusing to contribute toward a settlement of asbestos exposure claims filed against the state of Montana.

In a July 10 answer filed before Chief Judge Robert F. Rossiter Jr. of the U.S. District Court for the District of Nebraska, Lumbermens wholly denies NICO’s allegations and asserted various affirmative defenses.

NICO issued liability insurance to the State of Montana in effect from July 1, 1973, until July 1, 1975. NICO, in turn, bought …