In re the Arbitration Between State Farm Mutual Automobile Insurance & Callisto

—Order and judgment reversed on the law without costs and application denied. Memorandum: Supreme Court erred in granting petitioner’s application to stay arbitration of respondent’s underinsured motorist claim. Petitioner waived its right to insist upon prior written notice of respondent’s settlement with the tortfeasor. An insurer has an obligation to deal in good faith with its insured (see, Matter of Aetna Cas. & Sur. Co. v Crown, 181 AD2d 883, 884) and may not arbitrarily withhold consent and at the same time argue that its insured has not complied with a condition precedent (see, Matter…