Greenlight Asks Court to Compel Medicus to Arbitrate

AUSTIN, Texas - Greenlight Reinsurance Ltd. is urging a Texas federal judge to compel arbitration of a reinsurance contract dispute, citing the contract's arbitration provision as support. Medicus Insurance Co. v. Greenlight Reinsurance Ltd., No. 1:10-277 (W.D. Tex.).

In an April 30 memorandum filed in the U.S. District Court for the Western District of Texas, Greenlight argues that its cedent, Medicus Insurance Co., is contractually required to proceed to arbitration.

Greenlight reinsured Medicus under a medical professional liability aggregate stop loss reinsurance contract. Medicus terminated the contract on Jan. 1, 2010, and invoked commutation, seeking a $1.1 million commutation payment.