Reinsurer’s Attempt to Compel Arbitration Against Insureds Fails

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In certain relationships, a non-signatory to a contract with an arbitration clause may be compelled to arbitrate because of the benefits the non-signatory gains from the contract. But compelling a non-signatory to arbitrate is not an easy task. In a recent case, a reinsurer sought to compel insured school districts to arbitrate their claims, which the school districts brought against both the cedent risk management cooperative and the reinsurer when certain claims were not paid.

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