How is it decided if arbitration or mediation is an option?
A factor that may play into a decision to not offer arbitration is if the industry is highly regulated and the requested arbitration award requires one party or the other to go against state regulation. An example of this would be: A customer requested to have a $500 deductible on their home insurance. There is a claim made and it is found the agent made an error and the deductible was written up for $1000. The customer would like the business to make up the difference of $500. It is actually illegal for the insurance agent to pay the difference. The Insurance Commission can require the agent to pay the difference, but the state agency HAS to make that determination. If we know or are made aware of state regulatory requirements that have to be addressed only by that agency, we close the case and send the customer to the correct state agency. Mediation is only successful if both parties would like to participate, so we offer arbitration. After you both know that arbitration is the final
