Clarification to Rule 2-4 and Denial of Coverage

Chapter 17 of the Reference Guide to AF's Agreements and Rules has been updated to provide further clarification on Affirmative Defenses, specifically for no liability policy in effect on the date of loss and denial/disclaimer of coverage. Some of the updates include:

  • Clarifying the distinction between the two coverage prompts that a Respondent must answer when submitting a response (a liability policy was in effect on the loss date and has coverage been denied for the claim in dispute)
  • Scenarios where a denial of coverage defense for the claim may still be appropriate even when a denial of coverage letter to the alleged negligent driver may not be available
  • Arbitrator consideration and discretion over "conditional" denial of coverage letters

AF strongly encourages all filers, responders, and member arbitrators to read Chapter 17 for understanding and awareness. AF will consider the same viewpoint when a coverage defense is raised post-decision per Rule 3-9.

Article published in: May 2015 E-Bulletin