Reinsurer Asks N.Y. Judge to Stay ‘Improper’ Arbitration in $1.9 Million Dispute

NEW YORK — A reinsurer has asked a New York federal judge to stay a demand for arbitration in a dispute over whether it owes $1.9 million in reinsurance recoverables to an insolvent insurer, arguing that it has already commuted all of its liabilities with the liquidator.

In a June 13 petition filed before Judge Dale E. Ho of the U.S. District Court for the Southern District of New York, Yosemite Insurance Co. argues that ROM Reinsurance Management Co. — an entity that says it acquired the rights to collect certain assets in the liquidation — is not authorized to …