Underwriting Manager Moves to Compel Arbitration of Cedent’s Lawsuit

BOSTON — An underwriting management organization has moved to compel arbitration of a lawsuit accusing it of wrongfully denying a claim filed under a stop loss excess reinsurance contract, arguing that the claims are intertwined with the coverage issues that are already being arbitrated.

In a March 19 motion filed in the U.S. District Court for the District of Massachusetts, Starline USA LLC explained that the plaintiff, Wellforce Indemnity Company Ltd. (WIC), is already arbitrating its $1.1 million claim with the reinsurer, American National Insurance Co. (ANICO).

“WIC does not and cannot dispute its duty to arbitrate the subject matter …