Insureds Drop Appeal of Arbitrability Ruling in Applied Underwriters Dispute

CHICAGO — Two insureds have dropped their appeal of an Illinois federal judge’s ruling that pursuant to the delegation clause in an Applied Underwriters reinsurance participation agreement, an arbitrator must resolve the question of whether disputes arising under that agreement are arbitrable.

On Oct. 14, Nandorf Inc., d/b/a Unique Thrift Store, and Southwest Management Co. (collectively, Nandorf) voluntarily dismissed their appeal to the 7th Circuit U.S. Court of Appeals.

Nandorf purchased an “EquityComp” workers’ compensation insurance package from Applied Underwriters Inc. As part of the package, Nandorf entered into a Reinsurance Participation Agreement (RPA) with Applied Underwriters’ captive reinsurer, Applied …