Fletcher Re Asks Calif. Federal Judge to Send Reinsurance Commissions Dispute to Arbitration

LOS ANGELES — Fletcher Reinsurance Co. has asked a California federal judge to send its dispute with an insolvent insurer over commissions allegedly owed under an automobile quota share reinsurance agreement to arbitration, arguing that the parties clearly agreed to arbitrate all disputes arising from the agreement.

In a May 26 petition filed before Judge Sherilyn Peace Garnett of the U.S. District Court for the Central District of California, Fletcher asserts that the quota share agreement’s arbitration clause is valid and clearly applies to the dispute.

Fletcher, formerly Maiden Reinsurance North America, and Western General Insurance Co. (WGIC) entered into …