Our latest arbitrator workshop had over 400 member arbitrators in attendance. The purpose of these 30-minute workshops is to drive decision quality by:

• Sharing information with arbitrators on recent decision quality trends and drivers.
• Answering questions arbitrators may have on hearing cases.

Let’s take a closer look at the latest topics and key takeaways from our last workshop:

Supporting Evidence – Salvage Recovery
The following list includes evidence that might be submitted in support of the amount recovered for the sale of salvage:

• Recovering company’s salvage vendor invoice
• Recovering/responding company’s salvage quote
• Vehicle photos 
• Unrelated prior damage estimate

Supporting Evidence – Total Loss vs. Repair
The following list includes evidence that might be attached to support that the loss vehicle met the criteria of a total loss. 

• Total loss evaluation
• Repair estimate
• Vehicle photos
• Salvage vendor invoice
• State statute addressing salvage titles

Policy Limits & Additional Exposures

• AF cannot award damages when:
  • The proven damages are below the policy limit but exceed the limit when additional exposures are added.
• In this situation, the filing would be ruled out of jurisdiction.
• The policy limits can only be awarded when the proven damages trigger the policy limit. 

Multiple Impacts – Splitting Damages

• This is addressed on pages 34 and 35 of the Guide for Arbitrators. 
• The arbitrator has three options:
  • Review the estimate and calculate the correct amount of damages to award.
  • Using the repair estimate and/or vehicle photos, approximate the damages based on impacts and severity (i.e., if most damages are to the rear and rear damages are owed, award a greater percentage of the total damages). Be sure to show your math and explain your rationale. 
  • If you are unable to approximate the damages, adjourn the hearing and request the recovering company break down its damages, front versus rear. To adjourn the file and request clarification, use the Create Arbitrator Support Inquiry functionality to request the recovering company provide a breakdown of front and rear damages. 

Quick Tips

• Supplements and Prior Payment Credit
  • Confirm the payment is not for damages awarded in the initial filing. 
  • Prior payments can only be given when:
    • The responding company alleges the payment.
    • The payment has been proven as cashed.
    • The payment is for damages sought in the supplemental filing.
• Damage Audits – Is the Evidence Valid?
  • AF’s only rule relating to evidence is Rule 3-6 (pg. 64 in the Reference Guide to Arbitration Forums, Inc.'s Agreements and Rules).
  • The arbitrators accept any and all listed and submitted evidence (i.e., statements, photos, invoices, proof of payment) and evaluate its applicability and credibility.
  • Arbitrators need to review and weigh the evidence and decide whether the audit supports the argument.

Our next arbitrator workshops will be held on June 23 and June 25 at 2 p.m. ET. Enroll today. We hope to see you there!