Editor, Mealey's Litigation Reports: Reinsurance and Insurance Insolvency

SEATTLE — A Washington judge held Sept. 19 that where a primary policy does not cover the $250,000 in costs to repair a cracking and failing bridge, a reinsurer is not liable for sums paid by the primary insurer (The City of Renton v. Lexington Insurance Co. (USA), No. c06-203, W.D. Wash.).

U.S. Judge Ricardo S. Martinez of the Western District of Washington explained that a reinsurer is not bound to pay where the primary insurer paid on a claim that was completely outside the scope of the policy and not in good faith.