Insurer Pays TVA $42M In Coal Ash Disaster Coverage Row

Law360, Chicago (September 5, 2013, 4:42 PM EDT) -- A Bermuda-based Arch Reinsurance Ltd. unit paid the Tennessee Valley Authority $42 million Thursday to end arbitration over coverage for a disastrous 2008 dike failure at a power plant that dumped a mountain of toxic coal ash into a nearby river.

The deal resolves one of three arbitration disputes between TVA and insurers in Bermuda over coverage for the accident at TVA’s Kingston Fossil coal-fired plant in Roane County, Tenn., according to Leon Kellner of Perkins Coie LLP, who represents TVA.

The disaster spawned state and...
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