AF recently facilitated its July arbitrator workshop with over 400 member arbitrators in attendance. The purpose of these 30-minute workshops is to drive decision quality by:

• Sharing information with arbitrators on recent decision quality trends and drivers.
• Answering questions arbitrators may have on hearing cases.

July’s topics and key takeaways included the following:

Rental Disputes and Decisions

• Rental disputes and decisions are the more commonly disputed damage types.
• Typically, both the duration and the rate are disputed. 
• The decision should avoid hypotheticals.
• The arbitrator should focus on the arguments and the facts in the evidence. 

Concurrent Coverage

• Concurrent Coverage applies when more than one member, including self-insureds, provide coverage for the same party or vehicle. (Auto Forum)
• When the recovering company has paid third-party damages, the concurrently covered insured is liable. (Special Forum)
• Denial of coverage
  • Exclusion is upheld when a denial of coverage letter states complete denial of coverage or pleads that no policy is in effect.
  • A jurisdictional exclusion is denied for partial denials, such as first-party diminished value, administrative fees, or first-party loss of use/rental. The issue would be addressed in the damages section if other valid damages are requested in the filing. 

Rebuttal Evidence

• Rebuttal evidence is evidence submitted that refutes the responding party’s damage dispute, which includes, but is not limited to:
  • Invoices
  • Photos
  • Estimate (proving the vehicle met the criteria of a total loss)
  • Adjuster’s notes
  • Rental notes

Quick Tips

• Damages sought cannot include:
  • An insurer’s or self-insured’s operating expenses.
  • Expenses associated with investigating and adjusting losses.
  • An insured’s out-of-pocket expenses.
  • An insurer’s or self-insured’s administrative fees as “costs” for pursuing a loss.
• Additional exposures are:
  • Exposures to a responder’s policy limit.
  • Paid or unpaid.
  • Damages that are not sought in the filing. An exception is a double-dip situation for damages claimed in the filing. The prior payment may be an additional exposure to policy limits if not found to be a credit as a prior payment.  
• Proof of storage damages include, but are not limited to:
  • Salvage invoices
  • Towing invoices
  • Body shop documentation 
  • Adjuster’s notes

Our next arbitrator workshop will be held on September 23 and 25 at 2 p.m. ET. We hope to see you there!