STORY FROM: Reinsurance & Arbitration

Calif. Federal Judge Confirms $540,000 Arbitration Award in Favor of Applied Underwriters

SAN FRANCISCO — A California federal judge has confirmed an arbitration award requiring a policyholder to pay overdue workers’ compensation premiums to Applied Underwriters Co.’s affiliate, finding the parties’ Reinsurance Participation Agreement authorized the arbitrator to order Royal to pay money to the insurer.

In a Dec. 28 order, Magistrate Judge Donna M. Ryu of the U.S. District Court for the Northern District of California further found the award was not irrational because the arbitrator determined that the RPA and the policies “are not separate contracts between separate entities,” and that all of the agreements associated with the workers’ compensation ...

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