New dispute resolution program to settle complex insurance cases

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The American Arbitration Association, a provider of conflict management and dispute resolution services, is offering a new program designed to help parties involved in complex insurance coverage disputes to more easily resolve the cases.

The New York-based AAA’s Complex Coverage Neutral Evaluation (CCNE) process enables policyholders and insurance companies to obtain an objective expert third-party evaluation of the strengths and weaknesses of their respective cases.

The evaluator is selected, by mutual agreement of both parties, from AAA’s Complex Coverage Panel, comprised of neutrals with specialized insurance experience. These disputes are suited for neutral evaluation since they usually entail complicated technical and legal issues best considered by an expert in the field, as opposed to a judge or jury, the company said in a statement. They are also extremely expensive to litigate and typically marked by factual and legal uncertainty; thus, a large incentive encourages them to reach a form of resolution prior to trial, the company said.

“AAA’s Complex Coverage Neutral Evaluation program provides a viable option to settle insurance coverage disputes during a period when saving time and money for all parties is critical,” said Bob Matlin, vice president of AAA’s Commercial Division. “Submitting a case to CCNE or including a CCNE clause in insurance policy in addition to a standard arbitration clause is both prudent and practical for the insurer and insured. We’re very excited about this program as the panel includes nationally recognized insurance coverage experts who will be able to offer effective evaluation of the issues in dispute.”

CCNE is non-binding and confidential, which encourages direct communications between adversarial parties. The company said the process also serves as a “reality check” early on in a coverage dispute, which can assist policyholders and insurance companies assess their respective positions and negotiate accordingly.

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