STORY FROM: Reinsurance & Arbitration

Reinsurance Participation Agreement Dispute May Not Be Arbitrated, 4th Cir. Rules

RICHMOND, Va. — A reinsurance participation agreement executed in connection with the purchase of workers’ compensation coverage is an insurance contract under Virginia law and therefore disputes arising from that contract cannot be arbitrated, a federal appeals court has ruled.

In a Jan. 14 opinion, the 4th Circuit U.S. Court of Appeals explained that all of the documents executed as part of the workers’ compensation program, including the RPA, must be viewed as one integrated contract.

In 2013, Minnieland Private Day School Inc. entered into an RPA with Applied Underwriters Captive Risk Assurance Company Inc. (AUCRA) as part of Minnieland’s ...

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