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Arbitration Insurance Industry Policy Terms

Arbitration is a widely-used method for settling disputes between parties. During arbitration, parties submit their dispute to an impartial third person or party, usually chosen by the parties. Typically, parties... more +
Arbitration is a widely-used method for settling disputes between parties. During arbitration, parties submit their dispute to an impartial third person or party, usually chosen by the parties. Typically, parties to arbitration agree in advance to be bound by the arbitrator's decision. Arbitration is an alternative to litigation, but it shares many of the familiar features of litigation. Namely, parties to arbitration hold hearings before neutral decision-makers, present evidence and argue the merits of their position. Parties often choose arbitration due to its perceived advantages over litigation. Those perceived advantages include greater efficiency and flexibility, and lower costs. less -
Kennedys

Appellate Court of Illinois decision reminds insurers to communicate with insureds or face potential consequences: Estoppel of...

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The Appellate Court of Illinois recently reminded insurers that they may be estopped from raising coverage defenses through their misleading acts or statements, including silence. In Monroy-Perez v. Sentry Select Ins. Co.,...more

Pillsbury - Policyholder Pulse blog

Three-Dimensional Chess: Harmonizing Dispute Resolution Clauses in Commercial Insurance Programs

Considering the complex structure of commercial insurance programs—typically purchased in annual “towers” of insurance—risk managers and in-house counsel often do not pay sufficient attention to arbitration-related...more

BCLP

English Court Decides COVID-19 is a “Catastrophe”

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The English Court has, for the first time, considered the meaning of a “catastrophe”, as well as how Hours Clauses work in the context of non-damage business interruption losses claimed under two Property Catastrophe Excess...more

K&L Gates LLP

Litigation Minute: International Arbitration Clauses in Insurance Policies: Are They Valid in States With Anti-Arbitration...

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WHAT YOU NEED TO KNOW IN A MINUTE OR LESS - The New York Convention typically requires U.S. courts to enforce written arbitration agreements covering international disputes, including arbitration clauses in contracts with...more

Winstead PC

Insurance Broker Does Not Ordinarily Owe Fiduciary Duties To A Client

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In Hitchcock Indep. Sch. Dist. v. Arthur J. Gallagher & Co., a school district sued it insurance broker for failing to obtain insurance policies that did not have arbitration and choice-of-law clauses that favored New York....more

Haight Brown & Bonesteel LLP

Liability Policy’s Arbitration Endorsement Applies to Third Party Beneficiaries, Including Additional Insureds

In Philadelphia Indemnity Ins. Co. v. SMG Holdings, Inc. (No. C082841; filed 12/31/19, ord. pub. 1/28/20), a California appeals court held that a binding arbitration clause in an insurance policy extends to a third party,...more

Troutman Pepper Locke

Fifth Circuit Holds Settlement Proceeds Received by General Contractor From Subcontractors Constitute “Other Insurance” Which...

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Satterfield & Pontikes Constr., Inc. v. United States Fire Ins. Co., 2018 U.S. App. LEXIS 21488 (5th Cir. Aug. 2, 2018) - This case arises out of an excess insurance provider’s refusal to cover damages incurred by the...more

Pillsbury Winthrop Shaw Pittman LLP

Perspectives on Insurance Recovery - Summer 2018

Expanding the Boundaries of Coverage in the Face of Evolving Risks - Advances in technology, social change, new regulations—developments like these challenge companies’ risk-mitigation efforts and insurance programs. As the...more

Carlton Fields

Texas High Court Declines To Enforce Compel Arbitration Against Non-Signatory

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In a recent dispute involving a crop insurance policy, the Texas Supreme Court held that an independent insurance agency could not compel arbitration of certain claims brought against it in state court by an insured (JJ...more

Carlton Fields

Ninth Circuit Reaffirms That Washington State’s Prohibition Of Arbitration Clauses In Insurance Contracts Reverse-Preempts FAA

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This case concerned a coverage dispute between Technical Security Integration Inc. and its insurer, Philadelphia Indemnity. The District Court for the District of Oregon denied Philadelphia Indemnity’s motion to compel...more

Carlton Fields

Ninth Circuit Finds Arbitration Clause Showed Clear And Unmistakable Intent To Resolve Arbitrability Questions By Arbitration

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Finding Montana law was inapplicable to the subject insurance policy under both federal maritime choice-of-law principles and the policy language, the Ninth Circuit Court of Appeals determined that an arbitration clause was...more

Carlton Fields

Missouri Court Finds Insurance Contract’s Arbitration Clause Unenforceable As Against Public Policy

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This case arose from an accident at the General Motors plant in Kansas City, Kansas, where an electrician employed by Capital Electric Construction Company, Inc. was severely injured due to negligence by Solaris Power...more

Carlton Fields

Missouri Court Holds Arbitration Clause In Insurance Contract Unenforceable As Against Public Policy And Under Governing Law

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A Missouri district court recently held a mandatory arbitration provision was unenforceable in an insurance coverage dispute after an electrician was injured on the job and won an uncontested judgment in state court against...more

Troutman Pepper Locke

NEBRASKA: A Good Home for Berkshire Hathaway, but not for Reinsurance Agreements

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A Cornhusker by birth, I’ve always had a special affinity for Nebraska, and particularly Omaha, where I was raised. My only regret is that I was neither old nor rich enough to participate in Mr.Buffet’s original partnership....more

Carlton Fields

Alabama Federal Court Finds Cedent Did Not Waive Arbitration, And Orders Reinsurance Dispute To Be Arbitrated

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Alabama Municipal Insurance Corp. (“AMIC”), an Alabama non-profit public insurer, brought suit in Alabama federal court against Munich Reinsurance America Inc. (“Munich Re”), alleging breach of a reinsurance contract for...more

Carlton Fields

Court Finds California Insurance Code Section 11658.5 Reverse-Preempts Section 4 Of The FAA

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National Union Fire Insurance Company of Pittsburgh, PA provided Seneca Family of Agencies with workers’ compensation and employers’ liability insurance for Seneca’s operations in California from 2004 to 2013. The parties...more

Carlton Fields

Texas Court Finds Policy Contained Delegation Clause Requiring Arbitration Under English Law

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A Texas federal court addressed a dispute as to whether the insurance policy at issue contained an arbitration agreement and whether it required arbitration of the particular claim. Looking at the “Law and Practice” provision...more

Carlton Fields

Louisiana Federal Court Finds Removal Proper As Dispute Could Relate To An Underlying Arbitration Clause In Insurance Policy

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In this case, a Louisiana federal court denied a motion for remand of a former machinist’s asbestos-related claim, finding that an English insurer’s removal from state court was appropriate and that the dispute could relate...more

Carlton Fields

UK Court Considers Whether Later Conduct Stemming From A Loss Event Should Be Considered A Loss Under An Excess Of Loss...

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This case considers an appeal against an arbitration award concerning whether health claims from persons involved in cleaning up the 9/11 World Trade Center site should be considered to be multiple claims or should be...more

Carlton Fields

Third Circuit Reverses Order Denying Arbitration, Ruling That State Law Prohibiting Arbitration Of Insurance Matters Challenged...

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Applied Underwriters Captive Risk Assurance Company appealed from the denial of its motion to compel arbitration in a dispute related to a reinsurance participation contract with South Jersey Sanitation Company. The trial...more

Carlton Fields

Seventh Circuit Upholds Denial Of Motion To Compel Arbitration

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Applying Wisconsin law, the Seventh Circuit Court of Appeals determined the parties did not have an agreement to arbitrate because, even though their excess/reinsurance agreement contained “follow form” language, and the...more

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