Reinsurer Says $1 Million Dispute Over Health Insurance Claim Should Be Arbitrated

DETROIT — American National Insurance Co. has moved to dismiss a health insurer’s lawsuit accusing it of breaching a reinsurance contract by refusing to pay a nearly $1 million claim, arguing that the dispute should be arbitrated.

In a May 6 motion to dismiss filed in the U.S. District Court for the Eastern District of Michigan, American National contends that the broadly worded arbitration clause in the reinsurance agreement encompasses Alliance Health and Life Insurance Co. (AHL)’s lawsuit.

In January 2016, AHL and American National entered into a Medical Excess Reinsurance Agreement.

The claimant at issue works for a …