American Worldwide Insurance Inc. has won a court case that is helping it collect back commissions from a Midwestern life insurer.[@@]
A U.S. District Court judge in Indiana has declined to overturn a December 2004 decision by an arbitration panel in Chicago.
The arbitrators found that Conseco Life Insurance Company, a unit of Conseco Inc., Carmel, Ind., owed American Worldwide, St. Louis, $4.2 million in back commission payments.
American Worldwide’s contract with Conseco Life required American Worldwide to resolve any disputes in arbitration. Some critics of mandatory arbitration provisions argue that they strip the parties involved of many of the legal tools available in court proceedings.
Todd Green, owner of American Worldwide, has welcomed the Indiana court’s decision to uphold the Chicago arbitration decision.