Nonparty Insurers Can Seek FINRA Arbitration, Court Rules

Law360, Los Angeles (March 23, 2012, 7:55 PM EDT) -- A California appeals court on Friday said insurers involved in investment disputes may proceed before a Financial Industry Regulatory Authority arbitration panel if they are acting as agents for a party with an arbitration agreement even if the insurance company itself is not.

The California Court of Appeal, Fourth Appellate District, reversed a lower court's ruling that prevented Ameriprise Financial Services Inc. from seeking arbitration in a case involving a deceased widow whose son claims was induced into making unsuitable investments because two insurance companies were...
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