Intermediary, Cedent Settle Letter-Of-Credit Dispute

HARTFORD, Conn. - A reinsurance intermediary has agreed to settle its dispute with a cedent over a letter of credit posted in connection with a "rent-a-captive" reinsurance program. WEB Management LLC v. Arrowood Indemnity Co., No. 3:07-cv-424 (D. Conn.).

On March 17, Web Management LLC withdrew its claims against Arrowood Indemnity Co., which were pending before Judge Vanessa L. Bryant of the U.S. District Court for the District of Connecticut.

In 1999, WEB contracted with Arrowood to create a workers' compensation reinsurance program for TIG Insurance Co. Instead of incorporating its own captive reinsurance company, Arrowood reinsured with a …