Dec Page

The question of the month deals with arbitration. Many insurance disputes are handled through the use of arbitration, and the parties involved in these disputes often prefer arbitration to a long-drawn out, and costly lawsuit. But how much does the insured know about arbitration? Is an arbitration compulsory or voluntary? What is the procedure for entering into the arbitration process? Can a party withdraw from an arbitration hearing at any time? And, are there any appeals allowed from an arbitration decision?

For answers to these questions and to review the agreement, rules, and regulations of Arbitration Forums (a popular arbitration facility), link onto the designated article in the Bulletins.

One of the court cases discussed in the Dec Page deals with when an occurrence occurs for coverage purposes. The North Dakota Supreme Court has issued a ruling on this subject in a case that arose from mold damage to a house. Underinsured motorists (UIM) coverage and claims for the negligent infliction of emotional distress were the issues for the Alaska Supreme Court in another case in the Dec Page. The main question that court had to answer was whether UIM coverage was available for parents who suffered severe emotional distress upon viewing their daughter's body in the hospital after an auto accident. In another case, this one on appeal from the United States District Court, the Fifth Circuit had to decide which policy provided primary coverage for an auto accident involving a trucker who may or may not have been in the service of the insured at the time of the accident. And in the final case, the question of whether a notice of cancellation was proper had to be answered by an appeals court in Florida . Proof of mailing and an incorrect address raised the problems in this case.

Questions and Answers

If the retailer insured has a manufacturer of the product that wants to be shown as an additional insured on the retailer's CGL form, is the additional insured vendors endorsement the correct endorsement to use? See Additional Insured Vendor Endorsement Question. The insured welded a metal cover on top of a wheelchair lift. The next day, the insured was told that the lift did not work. Are exclusions j(6), k, and l on the CGL form applicable to this claim? See Property Damage Caused by Insured's Work.

Is railroad protective liability coverage built into the standard CGL form, or is it excluded by the language in the definition of insured contract? See Railroad Protective Liability Question. Symbol 9 on the BAP refers to nonowned autos, that is, autos that the named insured does not own, lease, hire, rent, or borrow. What type of autos are left to be included in this category of covered autos? See Covered Auto Designation Symbol 9 Analysis.

Self-Storage Facilities Coverage Form

The Self-Storage Facilities Coverage Form, MS SF 01, modifies the ISO commercial general liability forms, the building and personal property form, and the causes of loss—special form; the provisions of these forms apply to the risk except as otherwise provided in MS SF 01. The endorsement enhances the coverages provided by the standard forms by offering additional property coverages, some crime coverages, and coverages that apply only to a self-storage operation. Coverage for hired and nonowned auto liability, mechanical breakdown, and loss or damage to customers' autos may be added by endorsement. See Self-Storage Facilities Coverage Form.

Self-Insurance and Alternative Risk Financing

This article discusses how a self-insurance program works, what courts have said about the arrangement, and the advantages and disadvantages of instituting such a program. See Self-Insurance and Alternative Risk Financing.