The Arbitrators & others - PA law

[Mr.Mike]

Delaware County, PA.

3 Part Question:

1) In an Insurance claim for underinsured motorist who pays for the (3) arbitrators.
The State/county, Insurance company, or me the plaintiff? (It's the second leg of the suit)

2) Is there a credit due to the Insurance co. if the first part of a suit was a settlement for less then the full amount available on the policy?
If so, would it ever be more then the % of the settlement that I received ? (it got divided 3 ways with a different % to each)

3) Isn't it law, that monies from a settlement held in escrow account by your attorney must bare interest. (Held in escrow for 5yrs.)

------------------
Thank You,
Please let me know.
Regards,
Mike
[email protected]
Thursday, July 20, 2000
**On the Internet, there is no Shortage of Information, but
Wisdom is a Valued Commodity.

[This message has been edited by Mr.Mike (edited July 21, 2000).]

 

[lawrat]

I am a law school graduate. WHat I offer is mere information, not to be construed as forming an attorney client relationship.

1. Answer to question 1.
Dispute Resolution Program for Insurance Claims

A Procedural Guide

The Program

Responding to an expressed need for a simple, inexpensive, and expeditious way to resolve claims, the American Arbitration Association has prepared dispute resolution procedures for the insurance industry, claimants, and claimants' counsel. Initiated in 1983 on a pilot basis, the program has been found to speed up claim resolution and to help control litigation costs.

The dispute resolution program is entirely voluntary. Both insurers and claiming parties are invited to submit cases. Cases are filed by submission to arbitration or to nonbinding mediation; there need not be a previous contractual arrangement between the parties to use the program. Insurers or claimants list with the AAA cases that they would be willing to submit under the procedures. The AAA then serves as intermediary, explaining the program to the other party with an invitation to submit the case to mediation or arbitration. If there is agreement, the AAA appoints either a mediator or an arbitrator and proceeds to schedule the matter.

Mediation is a process in which a neutral assists the parties in reaching their own settlement but does not have the authority to make a binding decision. Arbitration is a process in which each side presents its case at a hearing before a neutral who makes a final and binding decision.

The arbitrators and mediators selected by the AAA for this program are qualified, experienced neutral attorneys and retired judges with an understanding of current legal and business practices. They have served frequently and have shown a high degree of professionalism, expertise, and acceptability. They are required to inform the AAA of any circumstance that might prevent a prompt hearing or create a presumption of bias. The AAA is authorized to replace neutrals when necessary.

The program is inexpensive. There is an administrative fee of $150 per party, plus a suggested compensation fee of $300 per case or the neutral arbitrator or mediator, to be paid equally by the parties. The exact compensation rate for the neutral will be agreed to by the parties in each case, with the assistance of the AAA.

2. if insurance coverage is 50k and settlement is 30k, 20k is not owed to anyone.

3. yes, your atty is to hold your money in a trust account and mustpay you the interest accruing on it. That account is for your benefit, from which attorney can pull reasonable expenses.

 

[Mr.Mike]

Lawrat,

In your response to Asw. #1 , Is a set fee of $300.00 for all arbitration or is this a special program; In other words can arbitrators for these insurance cases charge what they want as a fee, or is this state/fed regulated?

As for Asw. #2 I'm not clear of what your coveying.

Let me reiterate:
There was a 1st suit, where as 3 parties excepted 1 settlement. Now I am going for a second suit (underinsured motorist) and wondering if there is a credit my insurance company might be entitled to, and if so could the credit be high then the % of the settlement that I reciverd.

ex. total amount avil. was $330,000 stttlement was for $280,000, and was divded up to 3 parties
(67% - 28% - 5% ) leving a credit of $50,000 total of the whole.
If the insurance co. gets a credit, for my suit aginst them, would they be able to get a credit for more then my 67% of the 50k leftover?

Now, to your answer #3-
Is that true in all states? Including Penna? If I do not receive said interest what recourse do I have?

Thank You,
Please let me know.
Regards,
Mike
[email protected]
Monday, August 14, 2000
**On the Internet, there is no Shortage of Information, but
Wisdom is a Valued Commodity.




[This message has been edited by Mr.Mike (edited August 16, 2000).]

 

[lawrat]

Don't be lazy! : - )

1. Contact the american arbitration society and ask whether it is a set fee.

2. I have never heard of an insurance company being entitled to a credit based on an accident.

3. Contact the American Bar Association and ask about whether it is true for PA.

 

[Mr.Mike]

Yo Rat,

Come-on now I'm not lazy.
I am just in the dark throwing darts.

So what you saying here is that if I had a suit from an accident that was worth say 150,000 and their (defendants) policy says its good for up to 100,000 of coverage. So I decide to make settlement for 85,000 rather then to go all the way through court (maybe they might not agree with the 150,000 and say it's over priced, maybe I won't even get 85, so I settle). Then I go to my (own) underinsured motorists and file suit for that coverage because obviously they didn't have adequate amount of insurance to cover my claim of 150,000 and the arbitatrors say, yes we agree that the case is worth at least 150,000.

Isn't the insurance co. going to say, "OK, but what about the 15,000 that he didn't try to collect from the first carrier by settling, don't I (the insur. co.) get to subtract that for what I now have to pay the balance of? he might have gotten all of the 100,000 from them if he didn't settle?"

(* note: my under insuranced motoristis carries 100,000 limit. so they can cover all of it if the arbitatiors decided more then that).


Your saying that you never heard of the insurance co. getting a credit for this kind of situation?
correct or incorrect

This will be my last inquiry question about this subject.


Thanxs for your input, time and knowledge.


``Mr. Mike``
**I no longer need to punish, deceive, or compromise myself. Unless, of course,
I want to stay employed ! - - - CeasarVII

[This message has been edited by Mr.Mike (edited August 16, 2000).]

[This message has been edited by Mr.Mike (edited August 16, 2000).]