OLF Enhancement - Liability Deductible/SIR added to Affirmative Defense drop down list
Arbitration Forums, Inc.'s number one priority is to deliver best-in-class services to our members, ensuring we effectively and efficiently serve our member's recovery and resolution needs. Toward that end, we have implemented an enhancement to our Online Filing system - adding "Claim amount exceeds Liability Deductible/Self-Insured Retention" to the Affirmative Defense type drop down list.
If you are a responding company and your insured has a liability deductible/self-insured retention (SIR), you may* assert the affirmative defense, indicate the dollar amount in the Description field (or on the application form) and provide proof.
If the amount sought by the filing company is within the liability deductible/SIR, the filing will be administratively closed as lacking jurisdiction (intercompany arbitration has no jurisdiction over an insured's interest/exposure). (This applies to cases involving one respondent. If there are multiple respondents, the case will proceed to hearing and be handled accordingly.)
If the amount sought is greater than the liability deductible/SIR, the case will proceed to hearing but the award will be limited to any amount in excess of the liability deductible/SIR. For example, if the filing company is seeking $60,000 and the responding company's insured has a $50,000 liability deductible/SIR, the arbitrator will only be able to award $10,000 if liability and damages are proven at 100%.
*If you wish for arbitration to retain jurisdiction over the dispute and any award rendered against your company will be honored on behalf of the insured, simply do not assert the affirmative defense.