October 2015 E-Bulletin

This month's E-Bulletin topics include:

  1. Mandatory Delaware Arbitration
  2. Looking for the Best Experience with AF's Web Products?
  3. Updates to the Reference Guide to AF's Agreements and Rules
  4. Diminished Value Damages
  5. NASP 2015 Annual Conference: Eureka! Subro Education

Mandatory Delaware Arbitration

Delaware Road SignThe Delaware Department of Insurance recently issued Domestic/Foreign Insurers Bulletin No. 77 as a reminder for all insurers writing the coverages required under 21 Del. C. § 2118(a)(1)-(4) that they are required to submit to mandatory arbitration (AF) all subrogation claims among insurers pursuant to 21 Del. C. § 2118(g)(3).

The language of Section 2118(g) states that inter-company arbitration for subrogation claims applies to "all benefits provided under subsections (a)(1)-(4)."

Based on the coverages noted in (a)(1)-(4), intercompany arbitration through AF is mandatory in Delaware for disputes arising as a result of an accident involving a Delaware-registered motor vehicle under the following forums: Auto, PIP, Property, and Special.

View the FAQ prepared by AF to learn more information.

For more information specific to Domestic/Foreign Insurers Bulletin No. 77 and Del Code, Title 18, Section 2118, please submit your inquiries to doi-legal@state.de.us.

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Looking for the Best Experience with AF's Web Products?

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As a member-driven organization, we strive to provide our membership with best-in-class service. To gain full functionality on AF's Web site, please use Internet Explorer 8.0, 9.0, 10.0, or 11.0 as your browser when accessing the AF Web site. AF will be dropping support of Internet Explorer 7.0 by year end. At this time, AF does not support Firefox, Google Chrome, or Safari.

Please note, if you have a pop-up blocker installed, you must configure it to allow pop-ups from the arbfile.org domain. Failure to do so will cause problems with various functions within AF systems, e.g., online help, PDF generation, etc.

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Updates to the Reference Guide to AF's Agreements and Rules

An update has been made on Page 7 of the Reference Guide to AF's Agreements and Rules regarding the damages that may be sought in an Auto filing. The revised paragraph reads: "A claim filed in the Auto Forum may consist of more than just a collision or comprehensive payment. A claim may include an itemized list of losses such as towing, storage, rental reimbursement, and salvage expenses, provided they were paid out of the insured's policy or incurred by a self-insured pursuant to statute or judicial decision. However, the disputed claim amount cannot include a company's normal operating expenses or an insured's out-of-pocket expenses. In addition, diminution in value claims are only applicable to states where members are required to pay such claims out of the insured's policy (or as a self-insured) pursuant to statute or judicial decision."

An update was also made on Page 13 to include other acceptable evidence items that support policy limits: "In some cases, it is enough for a Respondent to simply assert the Affirmative Defense for insufficient limits, state its policy limit amount, and submit proof (e.g., policy declaration page, claim system coverage screen, or some other written documentation that states the policy limits)."

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Diminished Value Damages

When hearing an Auto case wherein an affirmative defense is raised regarding jurisdiction due to the Applicant's inclusion of diminished value damages, and the evidence supports that the Applicant's vehicle is leased:

  1. Uphold the affirmative defense if the filing seeks only the diminished value damages, or
  2. Deny the affirmative defense and award "Reduced Damages" (reducing diminished value) if the filing includes other accident-related damages that are in jurisdiction, i.e., repair costs, rental, etc.
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NASP 2015 Annual Conference: Eureka! Subro Education

NASP 2015 Conferecnce in EurekaNovember 8—11, 2015

The Peppermill Resort — Reno/Tahoe, NV

Be sure to visit us at Booth #407 or attend one of our sessions, "Arbitration Management Tools: From Special Arbitration to Performance Management Reports" or "E-Subro Hub"!

Visit the NASP Web site to register, select an exhibit booth, make hotel reservations, and download conference brochures.

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