Tag Archives: Arbitration

Arbitration Provision In Insurance Policy Applies Because Federal Arbitration Act Supersedes State Law Making Such Clauses Illegal

“Oh, Boy!” was my first thought after reading a case which holds that those arbitration agreements requiring policyholders to arbitrate in far-away places could not be stopped by state law. Congress should stop this, and state legislators should write laws to ban those insurance carriers who sell such policies.… Continue Reading

Surplus Lines Carriers Select Arbitration and Choice of Law in New York to Pay Less Coverage and Less on Claims

A Florida based insurance agent educator asked me for my thoughts about how arbitration clauses harm policyholders and provide less coverage. He was referencing my earlier post this week, Arbitration Clause Requiring New York Law and New York Arbitration Cited as Avoidance of Florida Lawsuit—Another Instance of Surplus Lines Insurer Abuse in Florida.… Continue Reading

Arbitration Clause Requiring New York Law and New York Arbitration Cited as Avoidance of Florida Lawsuit—Another Instance of Surplus Lines Insurer Abuse in Florida

Insurance Law360 is part of my daily reading and it tipped me off to a case which raises the same problem about arbitration, I noted in Should Insurance Agents Get Sued for Selling Insurance Which Requires Arbitration in a Far Away Location and Deprives Their Customers of Consumer Protection Laws? and Arbitration Is an Increasing … Continue Reading

Should Insurance Agents Get Sued for Selling Insurance Which Requires Arbitration in a Far Away Location and Deprives Their Customers of Consumer Protection Laws?

Why would any insurance agent sell a customer an insurance policy that allows the insurance company to low-ball, delay payment, and otherwise not pay, and then force the insurance customer to obtain justice through an arbitration in a far-away jurisdiction applying foreign law? That is exactly what many commercial policyholders are being sold in Texas … Continue Reading

Office of Public Insurance Counsel Weighs in Against Proposed Mandatory Arbitration Endorsement

Alex Winslow of Texas Watch passed along to me that the Office of Public Insurance Counsel (OPIC) has weighed in against the mandatory arbitration endorsement proposed by Texas Farm Bureau and now (semi-secretly) before the Texas Department of Insurance (TDI) for approval. OPIC is the state office tasked with representing policyholders in rate and form … Continue Reading

Insurance Appraisal Called “Almost Perfect Method” of Alternative Dispute Resolution

Law professor Johnny C. Parker recently published a law review article, Understanding The Insurance Policy Appraisal Clause: A Four-Step Program, where he claims that resolving property insurance disputes concerning amounts of loss is an “almost perfect method.” Here’s the quote: More than one hundred years of judicial and legislative scrutiny has shaped appraisement into an almost … Continue Reading

Finally, An Appraisal Award! Now What If The Insurance Company Won’t Pay It?

Colorado case law on property insurance appraisal is sparse. Colorado case law on enforcing appraisal awards is non-existent. So, if a policyholder receives a final appraisal award and the insurance company won’t pay it, a policyholder must likely file a lawsuit against the insurer to receive payment. Policyholders in Colorado are forced to look to … Continue Reading

Is Appraisal the Same as Arbitration in Texas?

In Hartford Lloyd’s Insurance Co. v. Teachworth, 898 F.2d 1058 (5th Cir. 1990), the insured made claims for hurricane and freeze damage under his Texas insurance policy issued by Hartford Lloyd’s. When the insured and Hartford were unable to agree on the damage, the insured invoked the appraisal provision of the policy. The appraiser for … Continue Reading
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