It has now been a little over three years since the state Supreme Court handed down its monumental decision in the case of Insurance Federation of Pennsylvania v. Commonwealth, Department of Insurance (Koken), 889 A.2d 550 (Pa. 2005), holding that automobile insurance carriers were not required to include arbitration clauses in their policies for the resolution of under insured and uninsured motorist claims.
Since that time, automobile insurance carriers have been free to amend their policies and rid them of arbitration clauses in response to many alarmingly unreasonable UIM/UM arbitration results, particularly in Luzerne and Lackawanna Counties. Consequently, recovery on most of these former arbitration claims will now be by way of the filing of literally thousands of lawsuits in the court system across the state.
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