STORY FROM: Reinsurance & Arbitration
N.Y. Federal Judge Compels Arbitration of TIG Reinsurance Dispute
February 11, 2020
NEW YORK — A New York federal judge has ordered arbitration of a reinsurance dispute between TIG Insurance Co. and a reinsurer, finding it is encompassed by the broad arbitration clauses in the treaties at issue.
In a Feb. 7 order, Judge Vernon Broderick of the U.S. District Court for the Southern District of New York said the arbitrators, not the court, should decide whether the underlying policies are reinsured by the treaties.
TIG Insurance Co. entered into two reinsurance treaties with AIG companies American Home Assurance Co. and New Hampshire Insurance Co. in 1974 and 1976, respectively.
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