Yacht Owner’s Fight With Insurer Tees Up Rare High Court Review

A Munich Re unit is set to challenge a Pennsylvania yacht owner at the US Supreme Court, bringing into focus a longstanding clash between federal maritime law and state insurance rules.

Great Lakes Insurance SE and the yacht owner, Raiders Retreat Realty Co., will argue on Oct. 10 over a provision in Raiders’ marine insurance policy that says federal maritime law must be used to resolve any disputes, with New York state’s insurer-friendly law serving as a backup.

The case—a rare insurance dispute that made it all the way to the highest court—delves into a legal gray area and presents ...