AF recently facilitated its September arbitrator workshop with over 305 member arbitrators in attendance. The purpose of these 30-minute workshops is to drive decision quality by the following:

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

September’s topics and key takeaways included the following:

Liability Deductibles and Self-Insured Retention (SIR)

• The responding company’s insured is responsible for this amount.
• It is comparable to a reduction taken to prove damages by a recovering company’s collision deductible.
• AF does not have jurisdiction over liability deductible/SIR.

Deferments and Additional Exposures

• Additional exposures are often a valid reason to allow a deferment.
• The arbitrator may decide whether to allow a deferment based on their experience and knowledge.
• Arbitrators are asked not to speculate on available policy limits in a jurisdictional exclusion. Therefore, allowing a deferment may be beneficial. 

Loss of Use Coverage Versus Loss of Revenue/Income Coverage

• Loss of use coverage is for the reimbursement of a rental vehicle or other alternative transportation.
• Loss of revenue coverage is for the reimbursement of business income lost due to damages incurred related to the loss.  
• This may also include reimbursement for injuries that were incurred by a driver or passenger.

In the Auto forum, the most common damage types sought are for loss of use and loss of income. 

Quick Tips

• Embedded Evidence
  • The parties determine the evidence to embed. 
  • The arbitrator must comment on embedded evidence. 
  • The comment should summarize the evidence contents. 
  • Simply typing reviewed or “police report” for a police report is unacceptable. 
• Bookmark the Guide for Arbitrators as a favorite 
  • This ensures you have the most up-to-date guidance from AF. 
• Negligence Versus Concurrent Coverage
  • When the recovering party files a Concurrent Coverage loss as a Negligence Loss or vice versa and the responding company does not raise a JE, what should the arbitrator do?
    • From the Decision Actions the arbitrator can “Create an Arbitrator Support Inquiry” or 
    • The Arbitrator can call AF at 866-997-3434 for assistance. 
• Policy Limits Acceptance
  • When there are additional exposures and the policy limits are at risk:
    • From the Policy Limits Worksheet scroll to the bottom the page to confirm if the recovering company has agreed to accept policy limits. 

Our next arbitrator workshops will be held on November 18 and 20 at 2 p.m. ET. Enroll today! We hope to see you there.