What is Intercompany Arbitration
Intercompany Arbitration is a forum where two member insurance carriers submit evidence in lieu of filing lawsuits to resolve disputed claims. Many insurance companies utilize Intercompany Arbitration to avoid the costs of litigation, which include filing fees, experts, depositions, and attorney fees. Intercompany Arbitration permits the insurance carriers to submit their liability position in writing and damage supports for an independent adjuster to review and provide a final decision.
Rules of evidence do not apply
As insurance companies know, this is a cost minimum approach. However, the rules of evidence do not apply and insurance companies can be prejudiced by that. For example, when a matter is presented in a courtroom, statements must be authenticated and there is the ability of cross-examination. That is not the case in Intercompany Arbitration. Be careful when summaries of statements obtained have been provided as “facts” for liability purposes. This “summary” gets farther and farther from the actual facts of the incident and there is no chance to cross-examine. The adverse carrier may want to raise that concern in a response.
Insurance companies want to lay out the facts of the accident, the applicable law, and damage supports in a clear and concise manner. This allows the arbitrator to better understand the facts and understand your position.
In summary, the insurance carriers want to lay out the facts and legal argument in an easy to read manner. The arbitrator will thank you and will understand your position better, which will lead to better outcomes.