In 1943, the casualty insurance industry sought to foster arbitration as an alternative to litigation in New York. They reasoned that by reducing litigation and its costs companies could improve intercompany relationships and pass savings on to policy holders. Arbitration Forums (hereinafter AFs) is a not-for-profit corporation that was created for this purpose. It is the nation’s largest arbitration provider. In 2021 the company members filed 869,000 arbitrations disputes and 2 million subrogation claims that together were worth over $17.6 billion.

The Special Arbitration Agreement Program was created in the 1950s. In accordance with the special arbitration agreement, Article First, insurance companies who are signatories to the agreement must submit claims to Arbitration Forums where a claim is settled and:

a) Each has issued a policy of casualty insurance covering, or as a self-insured covers, one or more parties asserted to be legally liable for an accident, occurrence, or event out of which a claim or suit arises; or

b) Each has issued separate policies of property or casualty insurance providing, or as a self-insured provides, concurrent coverage to the same party or parties asserted to cover an accident, occurrence, or even out of which a first or third-party claim or suit for bodily injury or property damage arises (excludes first-party automobile concurrent coverage).

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