Trenwick International UK's attempt to introduce a 90-day delay in the ruling of a $700,000 claim was thrown out by the Lebanese Court of Appeal last week.
In October 1997, the Bermudan-based insurer took out a reinsurance agreement with Cumberland Insurance & Reinsurance Company to cover credit default on consumer and commercial loans in Lebanon.
The contract was renewed for a further 12 months and, in July 1999, Trenwick was accused of failing to pay for losses from that time onwards. A clause in the contract stated any disputes were subject to Lebanese law.
On 3 April this year, a Lebanese arbitration panel decided Trenwick should pay $400,200 (£275,175) , interest of $306,000 (£210,404) and arbitration costs of $17,880 (£12,294).
It dismissed the group's claim for avoidance and repudiation of the two reinsurance treaties, as well as its claim for damages.
On 7 May, Trenwick's request to rebut the findings was turned down. It also made a request for a further 90 days extension on the decision, but this was rejected last Thursday.
It is thought the total claim, plus interest and costs, could be around $1.5m (£1.03m).
The Lebanese Court of Appeal has set a final judgment date of 29 November to decide if the panel's decision stands.