Satisfying the Condition Precedent
Tim McKernan, Training Manager, [email protected]
I trust you will agree that awards are paid more promptly when the adverse party had the opportunity to respond and
present their position to the arbitrator(s). The good news is that in 2006 approximately 95 percent of all arbitration
filings proceeded to hearing with a response from the Respondent Company. An area of concern, however, is the
5 percent that proceed to hearing without a response. Granted, a percentage of these are unanswered due to the
representative’s failure to take appropriate steps, but a percentage do go unanswered because the representative did
not receive the filing or AF’s subsequent Hearing Notice, or, if received, could not identify the insured or file number
listed on the application.
To make sure your case does not become one of the 5 percent, include current and correct claim information for the
party against which you are filing. This includes the correct insured name, file/claim number, and the representative’s
name and address. Intercompany arbitration is a tool to use when settlement negotiations reach an impasse. At a
minimum, you should secure the above information from the adverse representative.
This does not completely remove the Respondent (Company 2) from any responsibility. Per the Rules, if you can
identify the claim, you must amend any incorrect information on the application when you file the response (or amend
online). Again, the process is intended to be expeditious and easy to use, not bogged down in technicalities.
In 2005 and 2006, we voided 360 and 293 decisions, respectively, due to the condition precedent not being satisfied.
Many of these were voided after we wrote to the Respondent (Company 2) requesting payment of the award. Our
correspondence was their first notice of the arbitration proceeding.
To ensure an expeditious resolution of your dispute and prompt payment of any award secured, include current and
correct information for the adverse party(ies) when you file. Chances are, if our Award Pay Notice is the adverse
party’s first notice of your arbitration filing, the condition precedent most likely has not been satisfied. In closing,
listing a member’s home office address does not satisfy the condition precedent, unless this is the location of the
representative handling the claim.
3350 Buschwood Park Drive, Suite 295, Tampa FL 33618-4313
www.arbfile.org