An additional exposure in TRS is one that is outside of the scope of the arbitration. Unfortunately, we continue to see cases in which the Adverse Party asserted the dispute is Out of Jurisdiction due to an additional exposure(s), but the additional exposure(s) was not properly supported/proven.
The Adverse Party may cite the exposure(s) and claim that it renders the case outside of AF’s jurisdiction, but that does not automatically remove the case from arbitration, nor should the arbitrator immediately consider the case outside of AF’s jurisdiction. It is the arbitrator’s responsibility to determine if the Adverse Party has supported/proven that the Additional Exposure puts the case out of AF’s jurisdiction.
Has the Adverse Party submitted a declarations page or screenshot of the coverages to prove its limits? In multiple exposure situations, has the Adverse Party provided enough evidence to support an outstanding exposure(s) that may put their policy limits at risk? Remember, the Adverse Party can request a deferment at the time of response if the value of the additional exposure(s) is unknown. Moving forward with an answer is an indication by the Adverse Party that it has completed its investigation and is ready to resolve the dispute.
For additional guidance on Policy Limits issues, please see Arbitrator Procedures for Policy Limits FAQ.