NCJ Number
65502
Journal
Forum Volume: 13 Dated: (FALL 1977) Pages: 237-253
Date Published
1977
Length
17 pages
Annotation
AN ARBITRATION PROGRAM DESIGNED TO PROVIDE A NONJUDICAL FORUM FOR THE RESOLUTION OF INSURANCE COVERAGE DISPUTES IS DESCRIBED.
Abstract
INSURERS SHOULD HAVE THE CHOICE OF RESOLVING COVERAGE CONTROVERSIES THROUGH A TYPICAL LITIGATION PROCEDURE OR THROUGH A NONJUDICIAL MECHANISM. ONE OF THE FACTORS WHICH LED TO THE DEVELOPMENT OF THIS PROGRAM WAS THE LACK OF EXPERTISE IN INSURANCE LAW EXHIBTED BY MEMBERS OF BOTH THE TRIAL AND APPELLATE BENCH. THE ORIGINAL ARBITRATION PROGRAM WAS INTENDED TO HANDLE INTER-INSURANCE-COMPANY DISPUTES ONLY, BUT IT HAS BEEN EXTENDED TO INCLUDE ALL TYPES OF DISPUTES WITH NO LIMIT ON THE AMOUNT IN CONTROVERSY. THE PARTIES IN THE DISPUTE NO LONGER NEED BE INSURERS, AND THE MATTERS UNDER DISPUTE MAY BE COVERAGE AND OVERLAP ISSUES, CONTRACTUAL OR INDEMNITY ASSUMPTIONS OF LIABILITY, MIXED FEEL AND CONTRACT PROBLEMS, OR ANY OTHER DISPUTE AGREED UPON BY THE PARTIES. TWO PANELS OF ARBITRATORS HAVE BEEN ESTABLISHED: A LOCAL PANEL OF 1,300 DEFENSE TRIAL LAWYERS THROUGHOUT THE COUNTRY AND A NATIONAL PANEL OF ARBITRATORS FOR COMPLEX AND COSTLY CASES. ARBITRATORS ARE HIGHLY KNOWLEDGEABLE IN THE SUBJECT MATTER OF THE PARTICULAR CONTROVERSY AND CHARGE THEIR USUAL HOURLY OR PER DIEM FEES FOR THEIR SERVICES. THE ARBITRATION PROCESS BEGINS WITH A SUBMISSION AGREEMENT, PAYMENT OF ADMINISTRATIVE FEES, AND SELECTION OF ARBITRATORS. PARTIES THEN SUBMIT LEGAL BRIEFS AND WAIVE OR ATTEND AN ORAL HEARING BEFORE THE ARBITRATORS, WHOSE WRITTEN DECISION IS DUE WITHIN 30 DAYS. EXAMPLES OF SOME ARBITRATED CASES ARE GIVEN. THREE IMPORTANT STRENGTHS OF THE SYSTEM ARE THAT IT IS VOLUNTARY, ITS PROCESSES ARE SPEEDY, AND THE ARBITRATION IS EXPERT. HOWEVER, THE ARBITRATION PROGRAM HAS BEEN UNDERUTILIZED BECAUSE IT IS NOT SUFFICIENTLY KNOWN. THE PROGRAMS OF PROCEDURE ARE APPENDED.