Frequently Asked Questions about Special Arbitration

Yes, you may request a deferment in this forum. Per Rule 2-10, a deferment request by any party will be granted, unless challenged. An adverse party may challenge the request if it believes the delay is not warranted. If challenged, an arbitrator will consider the validity of the deferment request. If the deferment is allowed, the case will remain deferred for one year from the deferment request date. If the deferment is not allowed, the case will continue as not deferred.
Yes, with written consent or if the non-member implies consent when it submits an answer, unless the answer is an objection to AF's jurisdiction. The non-member's answer indicates an acceptance of a final and binding decision. However, it is recommended that you get written consent up front and submit a copy at the time of filing.
Yes, with written consent of the involved parties. You may submit cases to determine coverage disputes, apportion liability, allocate fault and/or determine contribution prior to settlement. Without written consent, there must always be a settlement with the injured party before filing Special Arbitration.
No, as long as the limit of liability is raised as a jurisdictional exclusion and supported by some form of evidence, in accordance with Rule 2-4. However, the other party may agree to accept your limits if they desire. Rule 3-9 also allows the possibility for post-decision relief.
Yes, a company can add additional signatories for alleged tortfeasors that the Recovering Party did not name. Your rationale for including them in the case will be outlined in your arguments. If the alleged tortfeasor is not insured by a signatory member, you will argue their negligence in the Recovery Arguments.
Only companion claims that are compulsory in Special for damages resulting from the same accident, occurrence, event, or offense will be heard together if they have been submitted within the same Special filing.
You may file cases for reimbursement of payments under UMBI or UMPD coverage from the insurer for the responsible tortfeasor who was identified or acknowledged coverage after the payment. Disputes involving UIM coverage are not compulsory in Special Arbitration and may be heard only with consent or if the responding member answers without asserting the affirmative defense regarding jurisdiction.
Yes, you can seek recovery of legal fees in this forum. These fees consist of expenses directly related to the prosecution or defense of a lawsuit and must be in conjunction with the damages sought for the settlement. In other words, a party may not file for legal fees only.
Once the claim is settled (per the definition of settlement), claims relating to construction defect exposures could be filed in Special as either of the third- party liability compulsory disputes. Contribution among co-defendants disputes could be used for recovery of all or part of a third-party settlement from another negligent tortfeasor; concurrent coverage disputes could be used for recovery of all or part of loss or legal expense payments from another insurer who also provides coverage for the same insured.
No, the decision is conclusive only of the issues in the matter submitted to the arbitrator and only as to the parties to the arbitration. All matters concerning an arbitration proceeding are held in strict confidence.
Yes, if permitted in the applicable jurisdiction, recovery of workers’ compensation benefits from an alleged responsible third-party tortfeasor is permitted in this forum. No other dispute involving workers' compensation is compulsory in Special Arbitration.
No. An adverse party may contest the settlement amount.
Decisions are final and binding to all parties, however, any party may appeal a decision wherein the Total Settlement amount is $100,000 or more (Rule 2-12). This appeal must be brought to AF's attention within 30 days from the date of the publication of the decision.
Once a decision is entered into AF's system (published), all interested parties will be notified that it is available on our website.
If the Contribution Sought Amount or legal Fees Sought Amount is under $15,000, one (1) arbitrator will hear the case. If either of these amounts is $15,000 or more, any party may request a three-person panel.
Rule 1-3 makes a claim based on a "claimant." Therefore, if the injured person and the owner of the vehicle are the same claimant, the bodily injury and property can be filed together (one filing). 
  • No, there are no counterclaims in Special Arbitration. The arbitrator will determine the apportionment of liability among the involved parties. The arbitrator will also apply that percentage to the total amount of the settlement to determine each party's contribution amount. Recovery for legal fees set forth in a company's written response will also be decided if these amounts are listed on the application.
  • If another third-party claim arising from the same event was settled by another participating party for which liability should be apportioned, they may join the existing case.
There is no time limit as long as a legal cause of action exists. AF follows the rules and guidelines of the local jurisdiction. However, the Recovering Party should file within 180 days from the date of settlement. Exceeding the 180 days allows an affirmative defense to be raised and allows an opposing party to try to show the delay has caused prejudice.
As a condition precedent to filing in Special Arbitration, all parties should conduct direct negotiations in an attempt to settle the claim. The condition precedent requires the filing party, at a minimum, to list the correct and current representative's name, address, insured name, and claim file number for all adverse parties. Also, a prerequisite to the compulsory provisions of Special is Settlement, as defined in the AF Rules (p. 10).
Yes, Uninsured Motorist recovery is compulsory in Special. In most cases, all the other first-party reimbursement situations will fall within the jurisdiction of another AF program - subject to the rules and regulations of that forum.
No. Additional PIP is not subject to loss transfer pursuant to Section 5105 of the Insurance Law which provides only for mandatory arbitration of basic no fault benefits. Special Arbitration may be used to recover APIP if all parties consent.
Yes, as long as a legal cause of action still exists and all tortfeasors who will participate in the arbitration have been released by the third party. 
  • The alleged tortfeasor(s) must be a self-insured entity and/or an insured with a casualty insurance policy.
  • One of the tortfeasors must contend others are legally liable for: (1) bodily injury or property damage, or (2) providing defense for the third party action.
  • One or more of the insurers and/or self-insureds must have participated in the settlement of a claim with the third party.
  • The insurers or self-insureds must be signatories (members) to the Special Arbitration Agreement. (Non-members may participate with consent.)
  • All participating parties have a policy or self-insure casualty or property coverage for the same person, entity, or risk for the same triggering event.
  • Either of the following conditions exists: (1) The insured is legally liable for a bodily injury or property damage claim and at least one of the insurers or self-insureds has settled the claim with the third party, or (2) The insured has suffered a loss or injury paid by at least one of the insurers or borne by the self-insured.
  • The insurers or self-insured are signatories (members) to the Special Arbitration Agreement. (Non-members may participate with written consent.)
If the filing company's argument will be that the Responding Company's liability coverage is primary for third-party damages, this would be a concurrent coverage dispute filed in Special Arbitration (Article First b). If the filing company is seeking recovery of their first-party damages from the Responding Company due to renter's/driver's negligence or liability under the contract, this would be filed in the Auto Forum.
Concurrent coverage disputes under Article First (b) in Special are limited to those involving property or casualty insurance. PIP is obviously not property insurance and casualty insurance is an AF-defined term that specifies bodily injury, property damage, personal injury or advertising injury, as well as uninsured motorist. It doesn't apply to PIP. Also, the compulsory dispute in PIP is triggered by recovery rights, which is defined to be much broader than subrogation, and specifically includes reimbursement and indemnity - which essentially describe contribution because of concurrent coverage. Based on the above, PIP is the appropriate forum to resolve this kind of dispute.
All Special Arbitration cases are heard by arbitrators who are experienced claims professionals and have been certified under an Auto Liability and/or General Liability track. Our Special arbitrators consist of signatory members as well as AF staff employees.
Compulsory disputes include liability apportionment between alleged joint tortfeasors, concurrent coverage disputes for third-party damages, and subrogation of workers' compensation benefits paid by an insurer or a self-insured from an alleged tortfeasor after settlement. Other kinds of disputes may be heard with the consent of all parties.
  • Compulsory arbitration is applicable to a maximum of $250,000 contribution sought per claim.
  • Claims for separate parties arising out of the same accident, occurrence, or event are considered separate claims.
  • AF considers a claim and a companion claim for a different line of coverage as separate claims. As such, each claim has its own monetary limit.
Concurrent coverage disputes filed in Special must be seeking contribution to the damages paid to a third party. These can include a driver using another party’s vehicle or rental vehicle, damages caused by construction defects over multiple policy periods (time on risk), and other contractor or subcontractor liability disputes as additional insured/contract liability in which one party settled the innocent party’s claim and seeks recovery from the other.
All filing can be done online at www.arbfile.org.
The Recovering Party pays the fee. Please see the AF Fee Schedule.
  • Cases are settled more quickly, capping the exposure to the third party.
  • Minimizes the need for expensive and drawn out litigation
  • Simple and easy for an adjuster to use
  • Certified claims professionals make the decision, not lay jurors.
If your company has elected to receive notices, you will be notified as each party completes their submission or their window for submission expires. The case is deemed "ready to hear” once all actions are taken and is available to be pulled by the arbitrator.
Yes, the arbitrator will provide comments explaining the basis for his/her decision.
No, settlement of the claim will not prejudice the case of any participating party.