Frequently Asked Questions - Mandatory Delaware Arbitration

  1. Is intercompany arbitration mandatory in Delaware?
  2. Is Arbitration Forums, Inc. (AF) the designated administrator of the intercompany arbitration proceedings?
  3. Is mandatory arbitration applicable only to insurers?
  4. Which forum(s) is mandatory, and why?
  5. Is arbitration mandatory for claims that do not involve a Delaware-registered vehicle/Delaware policy?
  6. Who may we contact if we have questions specific to Del Code, Title 18, Section 2118(g)(3)?
  1. Is intercompany arbitration mandatory in Delaware?
     
    • Yes. Del Code, Title 18, Section 2118(g)(3) states, "Disputes among insurers as to liability or amounts paid pursuant to paragraphs (a)(1)-(4) of this section shall be arbitrated by the Wilmington Auto Accident Reparation Arbitration Committee or its successors."
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  2. Is Arbitration Forums, Inc. (AF) the designated administrator of the intercompany arbitration proceedings?
     
    • Yes. Section 2118(g)(3) references "the Wilmington Auto Accident Reparation Arbitration Committee or its successors." The Personal Injury Protection Arbitration Agreement was previously titled "Automobile Accident Reparations Arbitration Agreement," and arbitration filings were heard by member arbitrators that comprised AF’s Wilmington Committee.
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  3. Is mandatory arbitration applicable only to insurers?
     
    • Yes. Arbitration Forums, Inc. only has jurisdiction over mandatory arbitrations between insurance companies. The DE Department of Insurance has a separate arbitration process for disputes that involve self-insurers. Section 2118(g)(3) states, "Any disputes arising between an insurer or insurers and a self-insurer or self-insurers shall be submitted to arbitration which shall be conducted by the Commissioner in the same manner as the arbitration of claims provided for in subsection (j) of this section."

      This said, if a self-insured is signatory to the Auto, PIP, Property, or Special Arbitration Agreement, or they consent to arbitrate a matter using one of the forums administered by AF, the matter can be filed with AF.
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  4. Which forum(s) is mandatory, and why?
     
    • The Auto, PIP, Property, and Special forums are mandatory forums for claims arising out of a motor vehicle accident involving vehicles registered in DE.

      21 Del. C. 2118(g)(3) references "amounts paid pursuant to paragraphs (a)(1)-(4) of this section…."

      Paragraph (a)(1): "Indemnity from legal liability for bodily injury, death or property damage arising out of ownership, maintenance or use of the vehicle to the limit, exclusive of interest and costs, of at least the limits prescribed by the Financial Responsibility Law of this State." Disputes arising from these claims are resolved through the Special Arbitration forum.

      Paragraph (a)(2): "Compensation to injured persons for reasonable and necessary expenses incurred within 2 years from the date of the accident…" Disputes arising from these claims are resolved through the PIP forum.

      Paragraph(a)(3): "Compensation for damage to property arising as a result of an accident involving the motor vehicle, other than damage to a motor vehicle, aircraft, watercraft, self-propelled mobile equipment and any property in or upon any of the aforementioned." Disputes arising from these claims are resolved through the Property forum.

      Paragraph (a)(4): "Compensation for damage to the insured motor vehicle." Disputes arising from these claims are resolved through the Auto forum.
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  5. Is arbitration mandatory for claims that do not involve a Delaware-registered vehicle/Delaware policy?
     
    • No. The insurance coverages required by Section 2118 (and for which the mandatory arbitration provisions relate) apply to vehicles required to be registered in the State of Delaware.
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  6. Who may we contact if we have questions specific to Del Code, Title 18, Section 2118(g)(3)?
     
    • Questions specific to the Delaware Code can be submitted to doi-legal@state.de.us. For questions specific to the intercompany arbitration process, please contact AF at status@arbfile.org or 1-866-977-3434.
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