Policyholders must be aware of arbitration clauses found in property insurance policies. Even if a state has an anti-arbitration law, most courts send the disputes to arbitration and possibly apply another state’s laws if the insurers are not based in the United States. For example, yesterday, a federal court ruled:1  

Continue Reading Missouri Court Upholds Arbitration Despite Anti-Arbitration Statute When Foreign Insurers Are Involved

In a rare win for policyholders regarding arbitration clauses, a Louisiana federal court ruled that Louisiana policyholders do not have to go to arbitration so long as the insurers are American insurers.1 The judge stated the law in Louisiana regarding this issue: 

Continue Reading The Property Insurance Policy Has an Arbitration Clause—Louisiana Court Says Policyholder Does Not Have to Go to Arbitration

This well-known idiom alludes to a catch or mysterious element hidden in the details.1 Policyholders purchase insurance to protect and secure their property. Unfortunately, many carriers do not disclose provisions that limit their policyholders’ rights in the event a dispute arises.

Continue Reading The Devil Is In the Details. What Did Your Premium Discount Actually Cost You?

Arbitration provisions are becoming more common in surplus lines policies. These provisions affect how disputes will be resolved and where they will be resolved and can impact the legal rights of property insurance policyholders. These clauses are becoming so prevalent that I wrote a blog asking, Will Arbitration Be the New Appraisal?
Continue Reading Check For Arbitration Provisions In Surplus Lines Policies

The first standard fire insurance policy was mandated by Massachusetts in 1873.1 For those interested in the older standard insurance policies, Rough Notes published a book briefly discussing the early history of standard fire insurance policies called The Standard Fire Policy.2
Continue Reading The First Standard Fire Policy—Did It Contain an Arbitration Clause Rather Than an Appraisal Clause?

The title to this post was a question posed to me by a number of people following an April Fool’s Day Insurance Journal article, With Florida Rulings, Will More Insurers Require Arbitration in Claims Disputes? The Insurance Journal noted that the Florida Office of Insurance Regulation approved a policy form calling for mediation and then arbitration for the resolution of property insurance disputes:
Continue Reading Is Arbitration Going to Replace Appraisal in Florida?

Read the full policy after the loss—RTFP. When doing so, it is also important to check for the manner in which disputes are to be resolved and the applicable rules, including the time frames to invoke them. This is especially true with foreign insurers where an arbitration provision will apply.
Continue Reading Check For Arbitration Provisions—Especially When Dealing With Foreign Insurers