STORY FROM: Reinsurance & Arbitration

Calif. Federal Judge Refuses to Reconsider Order Dismissing Insured’s Challenge of RPA

SACRAMENTO, Calif. — A California federal judge has denied an insured’s motion to reconsider an order dismissing its challenge of a Reinsurance Participation Agreement on the basis that it was not approved by the state insurance commissioner before going into effect, despite the commissioner’s determination that the RPA is void.

In an Oct. 17, Judge William B. Shubb of the U.S. District Court for the Eastern District of California held that the commissioner’s order is not controlling law, and as such, reconsideration is not warranted.

Applied Underwriters allegedly sold a workers’ compensation insurance program known as the EquityComp program ...

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