California Insurance Code 2071 APPRAISALS

All insurance policies issued in California that provide fire insurance coverage must, at a minimum, include an "Appraisal" provision to provide a means of resolution of dispute. An insurer cannot change the language required under the Insurance Code in an attempt to limit the rights and protections provided to an insured. An insurer can modify the mandatory language to expand the protections. They may add an "arbitration" clause, for example.

This method of resolution may be used to resolve first party insurance disputes of value of the loss. Disputes concerning issues other than value, such as the meaning of policy provisions, are not, strictly by the terms of Insurance Code Section 2071, subject to the appraisal process.  The parties may mutually agree to expand issues to be resolved in appraisal, however.  Eaton & Johnson, Inc. is experienced in the appraisal process. We are available as appraiser or as umpire.  Please contact us for further information on how we may help you with this method of dispute resolution.  Click for a step-by-step discussion of the process.

MEDIATION
 

Mediation is a process under which the parties submit their dispute to an impartial person--the mediator. The mediator may suggest ways of resolving the dispute, but may not impose a settlement on the parties.

Eaton & Johnson, Inc. is experienced in the mediation process. Please contact us for further information on how we may help you with this method of dispute resolution.



ARBITRATION

Arbitration is the referral of a dispute to one or more impartial persons for final and binding determination. It is private and informal, and intended to provide efficient and economical settlements. Insurance policies may contain specific provisions in an arbitration clause, so please be certain to look for the particular clause of the involved policy. An arbitration clause is not required to be included in all insurance policies. (see "Appraisal") Provisions may include issues subject to arbitration, evidence, locale, number of arbitrators, and so forth. Anything to which the arbitration provision applies, first party issues, third party issues, and/or the application of policy language and provisions, for example, may be resolved by arbitration.

Title 9 of the Code of Civil Procedure Section 1280 provides:

(e) "Party to the arbitration" means a party to the arbitration agreement: (1) Who seeks to arbitrate a controversy pursuant to the agreement; (2) Against whom such arbitration is sought pursuant to the agreement; or (3) Who is made a party to such arbitration by order of the neutral arbitrator upon such party's application, upon the application of any other party to the arbitration or upon the neutral arbitrator's own determination.

Eaton & Johnson, Inc. is experienced in the arbitration process. Please contact us for further information on how we may help you with this method of dispute resolution.

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