STORY FROM: Reinsurance & Arbitration
Court Upholds Confirmation of $577,136 Award
December 31, 2008
LOS ANGELES - A California appellate court has affirmed that an arbitration award directing a reinsurer to pay its cedent $577,136 in professional liability reinsurance proceeds does not violate California and Texas insurance laws. Associated International Insurance Co. v. Montenegro Re Ltd., No. B203064 (Calif. App., 2nd Dist.).
In a Dec. 22 opinion, California Court of Appeal, 2nd District, further ruled that the arbitrators did not exceed their authority in resolving all of the reinsurance claims that were within the scope of the broadly-worded arbitration provision.
In 1998, Associated and Montenegro entered into a professional liability quota share reinsurance contract ...