Insurance coverage is spelled out

In the wake of its former excess insurance carrier becoming insolvent, Wilton’s chief financial officer, Anne Kelly-Lenz, reviewed the town’s insurance coverage at the last Board of Selectmen meeting.
The town’s primary insurance carrier, Argonaut, offers coverage of $1 million per incident and $2 million aggregate, meaning per year, she said on May 8.
Chubb Insurance is the town’s excess insurance carrier. Coverage extends to $10 million per incident, $10 million aggregate.
The town switched to Chubb from Castlepoint, as the town’s excess insurance carrier, in 2014 when Castlepoint’s rating was downgraded from A- to B+. However, Castlepoint is still the insurance company responsible for claims made for incidents that occurred before the switch.
Last month, Castlepoint declared bankruptcy and its claims in this state were taken over by the Connecticut Insurance Guaranty Association. The town won’t know the amount of coverage through the guaranty association until the time a claim is made, Kelly-Lenz said.
Since there are no claims to be paid out, First Selectman Lynne Vanderslice clarified, there has been no discussion about amounts that might be paid.
The insolvency is an issue because the town and Board of Education are being sued by a family who alleges their preschool daughter was sexually molested by former Miller-Driscoll paraprofessional Eric Von Kohorn in 2012, when the town was still covered by Castlepoint. Any liability beyond the town’s primary insurance carrier would then be assumed by the guaranty association.