STORY FROM: Reinsurance & Arbitration

Arbitration Provision in Applied Underwriters’ Contract Void, Calif. Appeals Court Affirms

SAN DIEGO — An arbitration provision in a reinsurance participation agreement executed as part of Applied Underwriters’ workers’ compensation program is void because they were never filed with the California Insurance Department, a state appellate court has affirmed.

In a May 3 opinion, the appellate court further held that the court, rather than an arbitrator, must decide the issue of arbitrability because the policyholder is challenging the RPA as a whole.

In 2012, Applied Underwriters Inc. provided quotes to Nielsen Contracting Inc. for Applied's patented workers' compensation program, EquityComp. Based on AUI’s representations about the program's low cost and profit-sharing ...

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