STORY FROM: Reinsurance & Arbitration

StarLine Urges Mass. Federal Judge to Compel Arbitration of Wellforce Claims

BOSTON — An underwriting management organization is urging a Massachusetts federal judge to compel arbitration of a lawsuit accusing it of wrongfully denying a reinsurance claim, arguing that the allegations are intertwined with issues that are already being arbitrated.

In an April 30 reply filed in the U.S. District Court for the District of Massachusetts, StarLine USA LLC argues that Wellforce Indemnity Company Ltd. (WIC) is already arbitrating its $1.1 million claim with the reinsurer, American National Insurance Co. (ANICO).

WIC’s claims in the instant action invoke StarLine’s role as ANICO’s agent and should also be arbitrated, StarLine maintains.

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