Arbitration Forums, Inc Cannot Always Hear Member Cases
There are some reasons why an insurance company would be able to refuse to submit a case to Arbitration Forums, Inc, even if the insurance companies involved in the dispute over who is at fault for the accident in question are all members of the Forum. One of these reasons is for insufficient policy limits. If the company that damages are being sought from (the Respondent) files an Answer stating that the damages are more than their policy limits, or the policy limits left available, it can have the case withdrawn.
For example, say that a State Farm and an Allstate driver are involved in an accident and both drivers claim that they had a green light while the other ran a red light. Both insurance companies are members of Arbitration Forums. State Farm files arbitration against Allstate asking for $22,000 to reimburse them what they paid for their policy holder’s total loss vehicle. Allstate files an answer and shows that their policy holder only had $20,000 in property damage liability limits. Arbitration Forums, Inc cannot hear the case.
If the Applicant indicates that it will not
accept the available policy limits and the case cannot be heard by Arbitration Forums, Inc. because of this insufficient limits issue, then the case may be litigated. If the applying insurance company (Applicant) states on its application that it will
accept the available policy limits as full satisfaction, the case may still be heard, but no more than the Respondent’s policy limits may be awarded no matter what.