Medicus Urges Court to Spur Commutation Process

AUSTIN, Texas - A cedent is urging a Texas federal judge to enjoin a reinsurer from arbitrating a reinsurance contract and submit to commutation. Medicus Insurance Co. v. Greenlight Reinsurance Ltd., No. 1:10-277 (W.D. Tex.).

In an April 22 complaint filed in the U.S. District Court for the Western District of Texas, Medicus Insurance Co. asserts that Greenlight Reinsurance Ltd. is contractually required to proceed with the commutation process.

According to the complaint, Greenlight reinsured Medicus under a medical professional liability aggregate stop loss reinsurance contract. Medicus terminated the contract on Jan. 1, 2010, and invoked commutation.

Under Article 8 …