ARROWOOD AND COVENANT SETTLE REINSURANCE PREMIUM BATTLE
Arrowood Indemnity Co., as reinsurer, sued The Covenant Group, a reinsurance program administrator, alleging that Covenant agreed to hold harmless and indemnify Arrowood for Covenant’s “failure to collect all premium audits arising under insurance policies issued pursuant to certain” agreements. The complaint sought payment for $363,669.10 in premiums never remitted to Arrowood in breach of a reinsurance agreement. Covenant counterclaimed for $157,181.79 in alleged unpaid premiums. The parties stipulated to dismissal of the action with prejudice on February 23, 2009, after they agreed to settle all claims. The terms of the settlement are confidential. Arrowood Indem. Co. v. The Covenant Group, Case No. 08-1414 (USDC D.Conn. Feb. 23, 2009).
This post written by John Black.
