Ga. Federal Judge Orders Arbitration of Reinsurance Dispute; Cedent Appeals

ATLANTA — A Georgia federal judge has ordered arbitration of a reinsurance dispute, ruling that the reinsurer is not a “run-off reinsurer” as defined by the reinsurance contracts, therefore, the arbitration provision in those contracts is not void.

In a Feb. 26 order, Judge Steven Grimberg of the U.S. District Court for the Northern District of Georgia stayed the action pending arbitration. The cedent has appealed the decision to the 11th Circuit U.S. Court of Appeals.

Builders Insurance (a Mutual Captive Company), American Builders Insurance Co., and National Builders Insurance Co. (“Builders,” collectively) issued five successive, annual commercial general liability …