Federal Judge Denies Reinsurer’s Request for $7 Million in Security

DALLAS — A Texas federal judge has refused to order a managing general agent to post security on General Fidelity Insurance Co.’s pending $2.5 million arbitration claim for allegedly past-due commissions, noting that the reinsurer cannot show that it is likely to succeed because it is still too early to present and analyze that claim.

On Oct. 15, Judge Jorge A. Solis of the U.S. District Court for the Northern District of Texas also denied the reinsurer’s request for security on a $71,069 interim arbitration award, finding no reason to believe that the managing general agent will not pay the …