N.Y. Federal Judge Sends Dispute Over Reinsurance Trust Funds to Arbitration
May 14, 2020
NEW YORK — A New York federal court has compelled arbitration of a reinsurance trust dispute involving Universal Life Insurance Co. (ULICO), ruling that the arbitration clause in the parties’ reinsurance agreement supersedes the forum selection clause in the trust agreement.
On May 12, Judge Lewis J. Liman of the U.S. District Court for the Southern District of New York, explained that the trust agreement is not an amendment to the reinsurance agreement, therefore the terms of the reinsurance agreement apply.
PB Life and Annuity Company Ltd. (PBLA), a reinsurer domiciled in Bermuda, entered into a Coinsurance Reinsurance Agreement with …