Updates to AF’s Arbitration Rules

Illustration of a clipboard with a list of rules on itAF’s Member Council and Board of Directors approved the following updates to the arbitration rules. The changes will become effective August 1, 2021.

The changes have been bolded. 

Rule 1-4
  • For new Auto filings and TRS PIP and Medical Payments filings, the Recovering Party should name all involved member companies and any consenting non-member companies, if applicable, in the filing. A responding company may add other parties and/or argue the negligence of unnamed party(ies). Where the negligence of an unnamed party(ies) is argued, the Recovering Party may either withdraw its filing and re-file at a later date, or pursue recovery outside of intercompany arbitration, or allow the filing to be heard. By allowing the filing to be heard, the Recovering Party thereby agrees to accept any award against a responding company and waive its right to pursue any balance directly from any unnamed party.
Rule 2-4
  • If a Denial/Disclaimer of Coverage is being pled (see definition of Denial/Disclaimer of Coverage [b]), the party will be ruled out of jurisdiction so long as a copy of the denial/disclaimer of coverage letter to the party seeking liability coverage for the loss is provided as part of the evidentiary material submitted. If no such letter is provided of where the denial concerns concurrent coverage (Article First [b], Special Arbitration Agreement), the case will be heard and the arbitrator(s) will consider and rule on the coverage defense.
Rule 3-9
  • A responding company may assert No Liability Policy in Effect, Denial of Coverage, Policy Limits, or Liability Deductible/SIR via AF’s website up to 60 calendar days from the decision publication date if the (a) Filing company made its filing at least 120 calendar days before the statute of limitations expires; and (b) Responding company pleads its defense at least 60 calendar days before the statute of limitations expires. 

    A copy of the denial of coverage letter to the party seeking coverage for the loss or proof of Policy Limits or Liability Deductible/SIR must accompany the inquiry or no action can be taken.


Article published in: April 2021 E-Bulletin