STORY FROM: Reinsurance & Arbitration

Question of Arbitrability is for Arbitrators, Not Court, Ill. Federal Judge Rules

CHICAGO — The question of whether a dispute involving an Applied Underwriters reinsurance participation agreement is arbitrable should be decided by an arbitrator, not the court, an Illinois federal judge has ruled, noting the RPA contains “a robust delegation provision.”

In a Sept. 23 order, Judge John R. Blakey of the U.S. District Court for the Northern District of Illinois added that the parties’ reference to and incorporation of American Arbitration Association rules further confirms the delegation.

Nandorf Inc., d/b/a Unique Thrift Store, and Southwest Management Co. (collectively, Nandorf) purchased an “EquityComp” workers’ compensation insurance package from Applied Underwriters Inc. ...

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