Clearwater Seeks to Compel Reinsurer to Select Umpire

NEW YORK - Clearwater Insurance Co. has asked a New York federal judge to compel Granite State Insurance Co. to participate in selecting an umpire to oversee an arbitration of the parties' reinsurance coverage dispute. Clearwater Insurance Co. v. Granite State Insurance Co., No. 12-2611 (S.D. N.Y.).

Clearwater asserts that Sections 4 and 5 of the Federal Arbitration Act gives the court the power to order Granite State to proceed with the umpire selection process.

According to the April 4 petition, in 1982 and 1983, Granite State issued excess insurance policies to McGraw Edison Co. The policies were reinsured under …