Recent court rulings, both for and against arbitration clauses, greatly impact the liability of a risk. Some examples:
- On an Alabama case, the Eleventh Circuit Court recently upheld that “an executor suing a nursing home for wrongful death is bound by an arbitration agreement that binds the decedent.”
- The Illinois Supreme Court upheld the appellate court’s determination that an administrator can’t be compelled to arbitrate, but they reversed a panel’s finding that the arbitration agreements were unenforceable.
- The Florida Supreme Court held that various arbitration agreements are void and unenforceable.
- The Kentucky Supreme Court and West Virginia Supreme Court also had recent rulings.
In our work with alternative risk transfer mechanisms, we have witnessed many captives, risk retention groups, and similar alternative risk entities shifting toward requiring implementation of arbitration agreements.
How about you? Do your insured risks have underlying arbitration agreements? Are you guided in your business decisions based on whether a state upholds your current or future arbitration agreements? Has this been a recent topic of discussion within your insurance program or with your risk managers? Let us know.
