Reinsurers Push Back
Gencon said 10 reinsurers have fully reimbursed defense costs and settlements. Lexington and Westport, however, have refused payment, in part asserting the claims should have been addressed under employment practices liability policies instead of general liability coverage.
Gencon counters that the alleged conduct falls squarely under primary and excess general liability policies and cannot simultaneously be covered under employment practices policies due to “other insurance” provisions and exclusions.
A Westport representative declined to comment. Representatives for Gencon and Lexington did not immediately respond to requests for comment Wednesday.
Gencon is represented by attorneys Marshall G. Gilinsky, Jerry S. Goldman, Dennis J. Nolan, Bruce Strong and Thomas Dupont of Anderson Kill PC. Counsel information for the defendants was not available.
As the AIG insurance $55M Abuse Settlement suit moves forward, the case could test the boundaries of reinsurance obligations — and determine who ultimately bears the weight of tens of millions of dollars in abuse settlements.
