Applying Wisconsin law, the Seventh Circuit Court of Appeals
determined the parties did not have an agreement to arbitrate
because, even though their excess/reinsurance agreement contained
"follow form" language, and the underlying contract to
which the policy followed form contained an arbitration provision,
it nevertheless "merely codifie[d] a procedure whereby the
parties can potentially agree to arbitrate." The procedure
required: (1) a demand by the insured; (2) a dispute between the
insurers about liability; (3) payment by each insurer of half the
disputed amount; and (4) acceptance of payment by the insured.
Although the insured and the insurers on the underlying policy
met these steps prompting arbitration, none occurred with respect
to the excess/reinsurance policy. The excess/reinsurance insurer
never received a request for payment from the insured or made a
payment to the insured. As such, the Court determined the parties
did not agree to arbitrate a
