Arbitration has appeared as a requirement more often in certain property insurances. A former president of the National Association of Public Insurance Adjusters (NAPIA) recently asked me "what exactly is arbitration and how is it different from litigation or litigation?" I think it might be a good time to have a Tuesday at 2 with Chip Merlin session to go through the various dispute resolution issues that include litigation, litigation, arbitration, assessment, mediation and the insurance-sponsored mediation department.
Arbitration is not an assessment. That's a huge difference. If a public adjuster, contractor, or policyholder sees the word "arbitration," note that you are in a world other than the "evaluation world." The arbitration clause can read much like that for an assessment, but the two are regulated under different laws.
I, Arbitration is an increasing trend that exists within property insurance policies, and arbitration is not assessment I noted:
Arbitration is not assessment. We have had policyholders and inexperienced lawyers from other law firms speak for us and ask us to fix their bad arbitration awards because they treated the claim for arbitration as an assessment.
Arbitration requires lawyers. It's almost like an informal trial. Evidence is presented after I have sworn in witnesses. It almost feels like the procedure is in a court of law. The procedures are opposite and policyholders deserve to have excellent litigation lawyers make the presentation because it is much more legally technical than an assessment where the lawyer's litigation does not matter.
The point of this post is to warn policyholders and the public adjustments to determine if the property insurance contract contains an arbitration clause versus an appraisal clause. We find more arbitration clauses in real estate insurance ̵1; especially commercial insurances issued by surplus insurance companies. If the property insurance policy contains an arbitration clause, the procedure differs significantly from the assessment and the case must be prepared as if it were a trial rather than an informal assessment.
So, tomorrow's training session starts at PM EST will go into detail about the differences and advantages and with the disadvantages of each of the dispute resolution methods. There are even differences in mediation that need to be examined and explained more fully. Some insurance-sponsored mediation programs are nothing more than intermediaries who warn unrepresented policyholders about the pitfalls of the pitfall without any explanation of insurance benefits – they are state-sponsored sheep to slaughter programs that help the insurance industry.
Here is a link to Tuesday at 2 with Chip Merlin .
Thought for the day
Man must develop for all human conflicts a method that rejects revenge, aggression and retaliation. The basis of such a method is love.
—Martin Luther King, Jr.