Can a dispute regarding a denial of coverage ever be arbitrated?
Yes. Per Rule 2-5, if a responding company asserts the affirmative defense of denial of coverage they must also submit a copy of their denial of coverage letter to the person seeking the coverage under the policy. If a denial of coverage letter to the proper party is submitted, the case will be administratively closed. If no such letter is submitted, or the submitted letter is not to the appropriate person (i.e. letter is directed to Named Insured not person driving vehicle, or, to filing company advising them that coverage is being denied), the case will proceed to hearing wherein the denial of coverage position will be ruled on by an arbitrator. Another example could be where the responding company’s position is based on the theft of their insured’s vehicle. If the thief is unknown, the responding company will be unable to send a denial of coverage letter. This type of case will also proceed to hearing wherein the arbitrator will consider and rule on the defense of theft. Last, a den
