Insurer Seeks Arbitration of Reinsurer’s Action Alleging Improper Settlement Practices

GRAND RAPIDS, Mich. — A dispute in which a reinsurer accuses its cedent of improperly agreeing to settle underlying claims filed by a health care provider against two insured employee benefit plans should be arbitrated under the terms of the parties’ reinsurance contract, the cedent contends.

In a June 12 motion to dismiss filed in the U.S. District Court for the Western District of Michigan, Synetra Life Insurance Co. contends that Alliance Health & Life Insurance Co. (AHL) agreed to arbitration of any disputes involving interpretation of the reinsurance contract.

AHL entered into a Self-Funded Excess Medical Specific and Aggregate …