The ruling essentially relieves foreign insurers from state laws that prohibit arbitration in insurance disputes. Those laws exist in states like Louisiana with huge climate risks and frequent property insurance disputes.

While the 2nd Circuit ruling centered on hurricane claims, it would apply to any dispute that implicates a policy requiring arbitration for resolution. With the 2nd Circ. covering major insurance hubs in New York and Connecticut, this ruling gives insurers more authority to avoid costly litigation.