Transport Insurance v. Old Republic Insurance

In 1964 the plaintiff, Transport Insurance Company, executed a reinsurance agreement with the defendant, Old Republic Insurance Company. According to its terms Transport as re-insurer agreed to reimburse the insurer, Old Republic, for all losses incurred by the insurer in excess of $15,000 per claim on an accident liability policy, with the re-insurer subject to a maximum liability of $485,000 respecting each accident or occurrence. The $15,000 of liability retained by the insurer was termed the retention.

Subsequently an action was brought in Florida against an insured of Old Republic for…