American Arbitration Association/Joint Resolution, LLC Procedures for the Resolution of U.S. Reinsurance Disputes

  1. Applicability

    These Procedures for the Resolution U.S. Reinsurance and Insurance Disputes apply to disputes arising out of intra-industry insurance and reinsurance disputes and referred to the American Arbitration Association (hereinafter “AAA”) by Joint Resolution, LLC.

  2. Agreement of Parties

    The parties shall be deemed to have made these procedures a part of their arbitration agreement whenever they have provided for arbitration by the American Arbitration Association by filing a written submission to arbitration as provided under section 3 below. These procedures and any amendment of them shall apply in the form in effect at the time the administrative requirements are met for a submission agreement received by the AAA. The parties, by written agreement, may vary these procedures. After appointment of the arbitrator, such modifications may be made only with the consent of the arbitrator.

  3. Initiation under a Submission

    Parties to any existing dispute may commence an arbitration under these procedures by filing with the AAA a written submission to arbitrate under these procedures, signed by the parties. It shall contain a statement of the nature of the dispute, the names and addresses of all parties, any claims and counterclaims, the amount involved, if any, the remedy sought, and the hearing locale requested, together with the appropriate administrative fee as provided in the schedule included with these procedures. Unless the parties state otherwise, all claims and counterclaims will be deemed to be denied by the other party.

  4. AAA and Delegation of Duties

    When parties agree to arbitrate under these procedures, they thereby authorize the AAA to administer the arbitration. The authority and duties of the AAA are prescribed in the agreement of the parties and in these rules, and may be carried out through such of the AAA's representatives as it may direct.

  5. Joint Resolution, LLC Panel of Insurance and Reinsurance Arbitrators

    The Joint Resolution, LLC Panel of Insurance and Reinsurance Arbitrators (hereinafter referred to as “List of Arbitrators”) is made up of industry professionals with insurance and reinsurance transaction experience. All members of this list are retired or active executives or officers of insurance or reinsurance companies, and have at least 25 years of service to the insurance or reinsurance industries.

  6. Hold Harmless

    The parties involved in any arbitration under these procedures shall, jointly and severally, indemnify and hold harmless, the AAA, Joint Resolution, LLC and any arbitrator, from any and all fees, costs and expenses (including but not limited to attorneys fees) for any act or omission in connection with any arbitration conducted under these procedures. The arbitrator will require the parties to sign the attached separate hold harmless/indemnification agreement. See Exhibit A.

  7. AAA Administrative Office

    The AAA's Southeast Case Management Center in Atlanta is the central administrative office for disputes arising from these procedures.

  8. Mediation

    At any stage of the proceedings, the parties may agree to conduct a mediation conference under the AAA/Joint Resolution, LLC Mediation Procedures in order to facilitate settlement. The mediator shall not be an arbitrator appointed to the case. Where the parties to a pending arbitration agree to mediate under the AAA/Joint Resolution, LLC’s Mediation Procedures, no additional administrative fee is required to initiate the mediation.

  9. Appointment and Qualifications of Arbitrator

    A single, neutral arbitrator will be appointed, drawn from the AAA/Joint Resolution’s List of Arbitrators, as follows:

    1. The AAA shall simultaneously submit to each party an identical list of five proposed arbitrators drawn at random from the AAA/Joint Resolution List of Arbitrators from which one arbitrator shall be appointed.
    2. The parties are encouraged to agree to an arbitrator from this list and to advise the AAA of their agreement. If the parties are unable to agree upon an arbitrator, each party may strike two names from the list and return it to the AAA within seven days from the date of the AAA's mailing to the parties. Thereupon the AAA will pick the arbitrator from the names remaining on the parties’ lists.
    3. The parties will be given notice by the AAA of the appointment of the arbitrator, who shall be subject to disqualification for the reasons specified in Section 10. The parties shall notify the AAA within seven days of any objection to the arbitrator appointed. Any such objection shall be for cause and shall be confirmed in writing to the AAA with a copy to the other party or parties.
  10. Disqualification of Arbitrator
    1. Any arbitrator shall be impartial and independent and shall perform his or her duties with diligence and in good faith, and shall be subject to disqualification for
      1. partiality or lack of independence,
      2. inability or refusal to perform his or her duties with diligence and in good faith, and
      3. any grounds for disqualification provided by applicable law.
      4. Upon objection of a party to the continued service of an arbitrator, or on its own initiative, the AAA shall determine whether the arbitrator should be disqualified under the grounds set out above, and shall inform the parties of its decision, which decision shall be conclusive.
  11. Vacancies

    If for any reason an arbitrator is unable to perform the duties of the office, the AAA may, on proof satisfactory to it, declare the office vacant. Vacancies shall be filled in accordance with the applicable provisions of these procedures.

  12. Disclosure
    1. Any person appointed or to be appointed as an arbitrator shall disclose to the AAA any circumstance likely to give rise to justifiable doubt as to the arbitrator's impartiality or independence, including any bias or any financial or personal interest in the result of the arbitration or any past or present relationship with the parties or their representatives. Such obligation shall remain in effect throughout the arbitration.
    2. Upon receipt of such information from the arbitrator or another source, the AAA shall communicate the information to the parties and, if it deems it appropriate to do so, to the arbitrator and others.
    3. In order to encourage disclosure by arbitrators, disclosure of information pursuant to this Section 12 is not to be construed as an indication that the arbitrator considers that the disclosed circumstance is likely to affect impartiality or independence.
  13. Party Disclosures Regarding the Arbitrator

    Parties arbitrating under these procedures shall disclose to the AAA any factual circumstance of which they are aware which would be likely to give rise to justifiable doubt as to the arbitrator’s impartiality or independence, including any bias or any financial or personal interest in the result of the arbitration or any past or present personal or professional relationship with the parties or their representatives. Any party who proceeds with the arbitration with knowledge of such information, and fails to disclose it, shall be deemed to have waived the right to object to the continued service of the arbitrator based on the undisclosed information.

    The disclosures shall be made in writing to the AAA at the time of returning the list of arbitrators as provided in section 9. Any additional information that a party becomes aware of during the arbitration must also be disclosed in writing to the AAA.

    Any disclosure made by a party or their representative to the AAA about an arbitrator shall simultaneously be made to all other parties to the arbitration.

  14. Jurisdiction
    1. The arbitrator shall have the power to rule on his or her own jurisdiction, including any objections with respect to the existence, scope or validity of the arbitration agreement.
    2. The arbitrator shall have the power to determine the existence or validity of a contract of which an arbitration clause forms a part. Such an arbitration clause shall be treated as an agreement independent of the other terms of the contract. A decision by the arbitrator that the contract is null and void shall not for that reason alone render invalid the arbitration clause.
  15. Communication Between Arbitrator and Parties

    Unilateral, ex-parte communication between the neutral arbitrator and the parties is prohibited.

  16. Organizational Conference
    1. At the request of any party or at the discretion of the arbitrator or the AAA, the arbitrator may schedule as soon as practicable an organizational conference with the parties and/or their representatives. The organizational conference may be conducted by telephone at the arbitrator's discretion.
    2. During the organizational conference, the parties and the arbitrator should discuss such issues as the nature of documents/exhibits to be allowed, a timetable for hearings, if any, future conduct of the case, including clarification of the issues and claims, and any other administrative matters.
    3. Upon completion of an organizational conference, the parties shall be notified of deadlines for the submission of briefs and documentary evidence, as determined by the arbitrator.
  17. General Procedures
    1. The parties agree to have the dispute resolved by documents only, unless the arbitrator, in his/her discretion determines that an oral hearing is necessary. The arbitrator shall establish, in conjunction with the AAA, fair and equitable procedures for the submission of documents.
    2. If there is no organizational conference scheduled, the arbitrator shall notify the parties of deadlines for the submission of briefs and documentary evidence within 10 business days of his or her appointment.
    3. The arbitrator shall render a decision no later than 10 business days from the later of the date on which the briefs are due or the close of the hearing, if any. The decision of the arbitrator shall be in writing and shall be final and binding. The arbitrator need not render a reasoned award unless the parties request such an award in writing prior to the appointment of the arbitrator or unless the arbitrator determines that a reasoned award is appropriate.
    4. The arbitrator shall be relieved of all judicial formality and shall not be bound by the strict rules of procedure and evidence. Notwithstanding anything to the contrary, the arbitrator may at his/her discretion, request and consider underwriting and placement information provided by the Insurer to the Reinsurer, as well as any correspondence exchanged by the parties that is related to the reinsurance Contract.
    5. The arbitrator shall consider the custom and practice of the applicable insurance and reinsurance business, when rendering his/her decision.
  18. Date, Time, and Place of Hearing

    In cases in which a hearing is to be held, the arbitrator shall set the date, time, and place of the hearing, to be scheduled to take place within 30 days of the deadlines for the submission of briefs and documentary evidence. The AAA will notify the parties in advance of the hearing date.

  19. The Hearing

    At least two business days prior to the hearing, the parties shall exchange copies of all exhibits they intend to submit at the hearing. The arbitrator shall establish a fair and equitable procedure for the exchange of documents. The arbitrator shall resolve disputes concerning the exchange of exhibits.

    1. Generally, the hearing shall not exceed one day. Each party shall have equal opportunity to submit its proofs and complete its case. The arbitrator shall determine the order of the hearing, and may require further submission of documents within two days after the hearing. For good cause shown, the arbitrator may schedule additional hearings within seven business days after the initial day of hearings.
    2. The arbitrator, exercising his or her discretion, shall conduct the hearings with a view to expediting the resolution of the dispute and may direct the order of proof, may bifurcate proceedings, and may direct the parties to focus their presentations on issues the decision of which could dispose of all or part of the case.
    3. Generally, there will be no stenographic record. Any party desiring a stenographic record may arrange for one pursuant to the provisions of Section 19(e).
    4. Any party may be represented by counsel or other authorized representative. A party intending to be so represented shall notify the other party and the AAA of the name and address of the representative at least three days prior to the date set for the hearing at which that person is first to appear.
    5. Any party desiring a stenographic record shall make arrangements directly with a stenographer and shall notify the other parties of these arrangements at least three days in advance of the hearing. The requesting party or parties shall pay the cost of the record. If the transcript is agreed by the parties, or determined by the arbitrator to be the official record of the proceeding, it must be provided to the arbitrator and made available to the other parties for inspection, at a date, time, and place determined by the arbitrator.
    6. The parties may offer such evidence as is relevant and material to the dispute and shall produce such evidence as the arbitrator may deem necessary to an understanding and determination of the dispute. Conformity to legal rules of evidence shall not be necessary. All evidence shall be taken in the presence of the arbitrator and all of the parties, except where any of the parties is absent, in default or has waived the right to be present.
    7. The arbitrator shall determine the admissibility, relevance, and materiality of the evidence offered and may exclude evidence deemed by the arbitrator to be cumulative or irrelevant.
    8. The arbitrator shall take into account applicable principles of legal privilege, such as those involving the confidentiality of communications between a lawyer and client.
    9. An arbitrator or other person authorized by law to subpoena witnesses or documents may do so upon the reasonable request of any party or independently. The arbitrator shall determine the reasonableness of any request for witnesses to appear.
    10. The arbitrator and the AAA shall maintain the privacy of the hearings unless the law provides to the contrary. Any person having a direct interest in the arbitration is entitled to attend hearings. The arbitrator shall otherwise have the power to require the exclusion of any witness, other than a party or other essential person, during the testimony of any other witness. It shall be discretionary with the arbitrator to determine the propriety of the attendance of any other person other than the parties and its representatives.
    11. The arbitrator may postpone any hearing upon agreement of the parties, upon request of a party for good cause shown, or upon the arbitrator's own initiative.
  20. Evidence by Affidavit and Post-hearing Filing of Documents or Other Evidence
    1. The arbitrator may receive and consider the evidence of witnesses by declaration or affidavit, but shall give it only such weight as the arbitrator deems it entitled to after consideration of any objection made to its admission.
    2. If the parties agree or the arbitrator directs that documents or other evidence be submitted to the arbitrator after the hearing, the documents or other evidence shall be filed with the AAA for transmission to the arbitrator. All parties shall be afforded an opportunity to examine and respond to such documents or other evidence.
  21. Inspection or Investigation

    An arbitrator finding it necessary to make an inspection or investigation in connection with the arbitration shall direct the AAA to so advise the parties. The arbitrator shall set the date and time and the AAA shall notify the parties. Any party who so desires may be present at such an inspection or investigation. In the event that one or all parties are not present at the inspection or investigation, the arbitrator shall make an oral or written report to the parties and afford them an opportunity to comment.

  22. Interim Measures
    1. The arbitrator may take whatever interim measures he or she deems necessary, including injunctive relief and measures for the protection or conservation of property.
    2. Such interim measures may take the form of an interim award, and the arbitrator may require security for the costs of such measures.
    3. A request for interim measures addressed by a party to a judicial authority shall not be deemed incompatible with the agreement to arbitrate or a waiver of the right to arbitrate.
  23. Arbitrator's Compensation

    Arbitrators will receive an hourly arbitration rate of $350.00 plus reasonable out-of-pocket expenses including, but not limited to, transportation, lodging and meals. This rate covers both arbitrator compensation and an allocated portion for Joint Resolution, LLC’s services. All arrangements for the compensation of an arbitrator shall be administered through the AAA and not directly between the parties and the arbitrator.

  24. Waiver of Procedures

    Any party who proceeds with the arbitration after knowledge that any provision or requirement of these procedures has not been complied with and who fails to state an objection in writing shall be deemed to have waived the right to object.

  25. Extensions of Time

    The parties may modify any period of time by mutual agreement. The AAA or the arbitrator may for good cause extend any period of time established by these procedures, except the time for making the award. The AAA shall notify the parties of any extension.

  26. Scope of Award
    1. The arbitrator may grant any remedy or relief that the arbitrator deems just and equitable and within the scope of the agreement of the parties, including, but not limited to, specific performance of a contract.
    2. In addition to a final award, the arbitrator may make other decisions, including interim, interlocutory, or partial rulings, orders, and awards. In any interim, interlocutory, or partial award, the arbitrator may assess and apportion the fees, expenses, and compensation related to such award as the arbitrator determines is appropriate.
    3. In the final award, the arbitrator shall assess the fees, expenses, and compensation as provided in these procedures. The arbitrator may apportion such fees, expenses, and compensation among the parties in such amounts as the arbitrator determines is appropriate.
    4. The award of the arbitrator(s) may include:
      1. interest at such rate and from such date as the arbitrator(s) may deem appropriate; and
      2. an award of attorneys' fees if all parties have requested such an award or it is authorized by law or their arbitration agreement.
  27. Award upon Settlement

    If the parties settle their dispute during the course of the arbitration and if the parties so request, the arbitrator may set forth the terms of the settlement in a "consent award." A consent award must include an allocation of arbitration costs, including administrative fees and expenses as well as arbitrator fees and expenses.

  28. Delivery of Award to Parties

    Parties shall accept as notice and delivery of the award the placing of the award or a true copy thereof in the mail addressed to the parties or their representatives at the last known addresses, personal or electronic service of the award, or the filing of the award in any other manner that is permitted by law.

  29. Modification of Award

    Within 20 days after the transmittal of an award, any party, upon notice to the other parties, may request the arbitrator, through the AAA, to correct any clerical, typographical, or computational errors in the award. The arbitrator is not empowered to re-determine the merits of any claim already decided. The other parties shall be given 10 days to respond to the request. The arbitrator shall dispose of the request within 20 days after transmittal by the AAA to the arbitrator of the request and any response thereto.

  30. Release of Documents for Judicial Proceedings

    The AAA shall, upon the written request of a party, furnish to the party, at the party's expense, certified copies of any papers in the AAA's possession that may be required in judicial proceedings relating to the arbitration.

  31. Applications to Court and Exclusion of Liability
    1. No judicial proceeding by a party relating to the subject matter of the arbitration shall be deemed a waiver of the party's right to arbitrate.
    2. Neither the AAA, Joint Resolution LLC, nor any arbitrator in a proceeding under these procedures is a necessary or proper party in judicial proceedings relating to the arbitration.
    3. Parties to an arbitration under these procedures shall be deemed to have consented that judgment upon the arbitration award may be entered in any federal or state court having jurisdiction thereof.
    4. Parties to an arbitration under these procedures shall be deemed to have consented that neither the AAA nor any arbitrator shall be liable to any party in any action for damages or injunctive relief for any act or omission in connection with any arbitration under these procedures.
  32. Expenses

    The expenses of witnesses for either side shall be paid by the party producing such witnesses. All other expenses of the arbitration, including required travel and other expenses of the arbitrator, AAA representatives, and any witness and the cost of any proof produced at the direct request of the arbitrator, shall be borne equally by the parties, unless they agree otherwise or unless the arbitrator in the award assesses such expenses or any part thereof against any specified party or parties.

  33. Deposits

    The AAA may require the parties to deposit in advance of any hearings such sums of money as it deems necessary to cover the expense of the arbitration, including the arbitrator's fee, if any, and shall render an accounting to the parties and return any unexpended balance at the conclusion of the case.

  34. Interpretation and Application of Procedures

    The arbitrator shall interpret and apply these procedures insofar as they relate to the arbitrator's powers and duties.

  35. Suspension for Nonpayment

    If arbitrator compensation or administrative charges have not been paid in full, the AAA may so inform the parties in order that one of them may advance the required payment. If such payments are not made, the arbitrator may order the suspension or termination of the proceedings. If no arbitrator has yet been appointed, the AAA may suspend the proceedings.

  36. Administrative Fees

    As a not-for-profit organization, the AAA shall prescribe an administrative fee to compensate it for the cost of providing administrative services. The fees in effect when the fee or charge is incurred shall be applicable. The administrative fee shall be advanced by the party or parties making a claim or counterclaim, subject to final apportionment by the arbitrator in the award.

    The administrative fees of the AAA are based on the amount of the claim or counterclaim. Arbitrator compensation is not included in this schedule. Unless the parties agree otherwise, arbitrator compensation and administrative fees are subject to allocation by the arbitrator in the award. Administrative fees are payable in full when claims, counterclaims, or additional claims are filed.

Fees

Amount of Claim

Administrative Fee

Above $0 to $100,000

$1,625

Above $100,000 to $500,000

$4,000

Above $500,000

$7,500

Fees are subject to increase if the amount of a claim or counterclaim is modified after the initial filing date. Fees are subject to decrease if the amount of a claim or counterclaim is modified before the first hearing. Parties on cases held in abeyance for one year by agreement, will be assessed an annual abeyance fee of $300. If a party refuses to pay the assessed fee, the other party or parties may pay the entire fee on behalf of all parties, otherwise the matter will be closed.

Hearing Room Rental

The fees described above do not cover the rental of hearing rooms, which are available on a rental basis. Check with the AAA for availability and rates.