STORY FROM: Reinsurance & Arbitration
N.Y. Federal Court Punts Request for Foreign Reinsurer to Post Security Back to Arbitrators
August 8, 2019
[Editor's note: Nora Valenza-Frost of Carlton Fields represents U.S. and international insurers and reinsurers in arbitration and litigation involving complex claims, coverage, and regulatory issues across all lines of business.]
The Southern District of New York found that New York Insurance Law section 1213(c)(1), requiring that foreign insurers post sufficient security, applied to the defendant, a foreign reinsurer in liquidation, in order for the defendant to file its motion to dismiss and compel arbitration.
The court rejected the defendant’s reliance on non-binding precedent in In re Laitasalo, “in which the court held that a group of foreign bankrupt insurance ...
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