Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.
Trending News
Regarding insurance, under what circumstances is arbitration mandatory in the state of TN?
Studying for a license test and there's a question that is not answered specifically in the study material.
The question is which of the following statements is incorrect?
1. arbitration is generally not binding on either party
2. the parties must agree on the selection of the arbitrator
3. arbitration is mandatory when a party seeks compensation for an uninsured motorist carrier
4 arbitration is only mandatory when the parties cannot agree on the settlement of an uninsured motorist claim
*Reminder this is for the state of TN.
This is for Property and Casualty insurance (P&C). By process of elimination i know it is either #3 or #4 as they cannot both be true at the same time.
2 Answers
- AnonymousLv 710 years agoFavorite Answer
First, it depends on the TYPE of insurance you're talking about . . . but normally, it's going to be #4. Keep in mind, with arbitration, it's FIRST PARTY ONLY, and it's when you can't agree on the dollar value. Normally, arbitration IS binding - it's written into the policy that way; you each select your OWN arbitrator (and those two select the third), so you don't get a say in the other party's arbitrator OR the third one; and it's NOT automatically mandatory for uninsured motorist claims.
- Casey YLv 710 years ago
Arbitration is only binding if everyone agrees for it to be binding.
I would say that #3 is incorrect. "Arbitration is mandatory when a party seeks compensation for an uninsured motorist claim." What if they are able to agree without going to an arbiter?
#'s 1,2 and 4 all seem far more correct, but I am not licensed in TN.
