News & Analysis as of

Federal Arbitration Act Reinsurance

The Federal Arbitration Act is a United States federal statute enacted in 1925 that governs arbitration in contracts implicating interstate commerce. The Act applies in both federal and state courts. 
Hinshaw & Culbertson - Insights for Insurers

The Second Circuit May Well Reconsider Reverse-Preemption of The New York Convention by the McCarran-Ferguson Act

A significant number of states prohibit or restrict the arbitration of disputes between an insurer and its policyholder and/or preclude the inclusion of arbitral provisions in insurance policies.The McCarran-Ferguson Act...more

Hinshaw & Culbertson - Insights for Insurers

The Continued Rise Of The New York Convention And The Fall Of The "Bellefonte Cap."

Another Circuit Court Holds That the New York Convention Pre-empts State Laws Prohibiting Arbitration of Insurance Disputes - On August 12, 2021, the U.S. Court of Appeals for the Ninth Circuit held that Article II, Section...more

Carlton Fields

New York Federal Court Confirms Arbitration Award Where Plaintiff Offered No Grounds to Vacate, Modify, or Correct Award

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PB Life and Annuity Co. Ltd. brought this action seeking a declaratory judgment that a breach of contract dispute with Universal Life Insurance Co. was not subject to arbitration and must be litigated in federal or state...more

Carlton Fields

District Court Orders Insurer in Receivership to Arbitrate With Reinsurers, Rejecting Argument That Jurisdiction Rests With...

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The District Court of Puerto Rico upheld a prior judgment ordering Integrand Assurance Co. to arbitrate its claims against its various reinsurers, rather than remand the case to the court overseeing Integrand’s receivership,...more

Carlton Fields

District Court Grants Motion to Compel Arbitration, Finding Arbitration Provision Not Severable From Allegedly Void Contract

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A Pennsylvania federal district court granted a motion to compel arbitration pursuant to 9 U.S.C. § 4 of the Federal Arbitration Act, over objection by the defendant on severability grounds. The defendant argued that its...more

Mintz - Arbitration, Mediation, ADR...

Consolidation of Arbitrations is a Procedural Matter Presumptively For the Arbitrator to Decide in Accordance With the Parties’...

Since arbitration is a process of dispute resolution in accordance with a private agreement, the question of consolidation of arbitral proceedings ought to be determined in the same manner as other procedural issues. In...more

Carlton Fields

Illinois Appellate Court Holds Nebraska Arbitration Act Reverse Preempts Federal Arbitration Act and Renders Arbitration Clause in...

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An Illinois appellate court recently affirmed a lower court decision granting summary judgment and denying defendant insurers’ motion to compel arbitration where Nebraska law governed, reverse preempted the Federal...more

Carlton Fields

Second Circuit Joins Sister Circuits in Holding Party-Appointed Arbitrators Not Subject to Same Disclosure Requirements as Neutral...

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The Second Circuit recently held that parties seeking to vacate awards under Federal Arbitration Act Section 10(a)(2) must satisfy a higher burden in showing evident partiality by a party-appointed arbitrator. ...more

Carlton Fields

Insurance Receiver’s Preemption Argument Under Mccarran-Ferguson Fails To Avoid Arbitration Of Reinsurance Dispute

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The receiver for Gramercy Insurance Company sought to avoid arbitration of a reinsurance dispute with Contractor’s Bonding, Ltd., by arguing the FAA was reverse preempted under the McCarran-Ferguson Act....more

Carlton Fields

California Court Considers Enforceability Of Arbitration Clause In Reinsurance Related Agreement Applying Nebraska Law

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In a case involving a reinsurance participation agreement (RPA), a California trial court has examined the interplay between two seemingly irreconcilable contract provisions: one that provided for the arbitration of any...more

Locke Lord LLP

NEBRASKA: A Good Home for Berkshire Hathaway, but not for Reinsurance Agreements

Locke Lord LLP on

A Cornhusker by birth, I’ve always had a special affinity for Nebraska, and particularly Omaha, where I was raised. My only regret is that I was neither old nor rich enough to participate in Mr.Buffet’s original partnership....more

Carlton Fields

First Circuit Upholds Arbitrator’s Denial Of Arbitrability Of Reinsurance Agreement, Finding No Manifest Disregard Of The Law

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Mountain Valley Property, Inc (MVP) entered into a three-year reinsurance participation agreement with Applied Underwriters Captive Risk Assurance Co. Inc. (AUCRA), which contained a mandatory arbitration clause as well as a...more

Carlton Fields

Ninth Circuit Finds Plaintiff Entitled To Trial On Issue Of Whether An Arbitration Agreement Was Executed

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Defendant provided the district court with copies of two contracts – a Reinsurance Participation Agreement and a Request to Bind – that were purportedly signed by Plaintiff’s CEO and contained arbitration clauses....more

Locke Lord LLP

ARIAS Certified Arbitrators: One Size Does Not Fit All

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The Board of Directors for the AIDA Reinsurance and Insurance Arbitration Society (“ARIAS”) has been considering increasing ARIAS’ reach by expanding membership to brokers and policyholders. This is only in the exploratory...more

Carlton Fields

Appellate Court Rejects Claim Of Arbitrator Bias Based On Umpire’s Service As A Party Arbitrator In Other Matters Involving A...

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The Second Circuit has rejected the attempt of a retrocedent, IRB Brasil Reseguros S.A. (“IRB”), to vacate certain arbitration awards against it in favor of its retrocessionaire, National Indemnity Company (“NICO”). IRB...more

Carlton Fields

Reinsurance Arbitration Award Stands In Face Of Challenges To Rationality And Impartiality Of Decision

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Yosemite Insurance Co. (“Yosemite”) lost its challenge to an arbitration award that found Nationwide Mutual Insurance Co. (“Nationwide”) was not required to cover a share of Yosemite’s settlement with the State of California...more

Carlton Fields

Third Circuit Reverses Order Denying Arbitration, Ruling That State Law Prohibiting Arbitration Of Insurance Matters Challenged...

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Applied Underwriters Captive Risk Assurance Company appealed from the denial of its motion to compel arbitration in a dispute related to a reinsurance participation contract with South Jersey Sanitation Company. The trial...more

Foley & Lardner LLP

Seventh Circuit Determines that Service-of-Suit Clauses Can Waive Statutory Right of Removal

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Pine Top Receivables has returned to the published opinions of the U.S. Court of Appeals for the Seventh Circuit. We previously wrote about Pine Top’s successful attempt to compel arbitration with a Uruguayan company and the...more

Carlton Fields

Massachusetts Federal Court Rejects Pre-Award Challenge To Party-Appointed Arbitrator

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In a recent reinsurance case, a Massachusetts federal court denied a pre-award petition of a cedent to remove the reinsurer’s party-appointed arbitrator, finding that the Federal Arbitration Act (the “FAA”) did not authorize...more

Locke Lord LLP

Q&A on SCOTUS and Arbitration

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Q: Why has the Supreme Court of the United States taken more cases involving disputes over arbitration over the past decade or so and what does it mean for the insurance and reinsurance industry? Arbitration law used to...more

Carlton Fields

Court Confirms Arbitration Award Relating To Three Arbitration Agreements And Orders Certain Documents Unsealed

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The court confirmed a final arbitration award in favor of the Petitioner, Employers Insurance Company of Wausau (“Wausau”), pursuant to Section 9 of the Federal Arbitration Action (FAA). Wausau and Ace Property and Casualty...more

Carlton Fields

New York Federal Court Considers Procedural Attacks To Arbitration Confirmation Proceedings

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Late last month, a federal district court in New York tackled procedural challenges to an arbitration confirmation proceeding. The arbitration arose from a dispute between an insurer and its reinsurer over the amount due to...more

Carlton Fields

Federal Court Confirms Reinsurance Arbitration Award, Finding That Panel’s Alleged Calculation Error Did Not Justify Modification...

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A federal court recently granted a reinsurer’s motion to confirm an arbitration award, and denied a cedent’s petition to modify the same, holding that the panel’s alleged error in computing the amount due to the cedent was...more

Carlton Fields

New York Federal Court Addresses Umpire’s “Pre-Selection” Disclosure Obligations In Reinsurance Dispute

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In a dispute arising out of a series of contentious reinsurance arbitrations over a seven-year period between National Indemnity Company (“NICO”) and IRB Brasil Ressegurous S.A., the court confirmed three awards issued by an...more

Carlton Fields

Court Confirms Final Arbitration Award In Reinsurance Dispute

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Certain Underwriters at Lloyd’s of London petitioned the U.S. District Court for the District of Massachusetts to confirm an award issued by a three-member panel in an arbitration against Transport Insurance Company. The...more

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