If a company has policy limits can an arbitrator disregard the policy limit and award compensation over the limits? And, if so, is the award binding?
If the Respondent does not properly assert and support their policy limit coverage defense under the Affirmative Defense section on the Contentions Sheet, or they fail to assert at all, the arbitrator may award the Applicant’s full claim amount. Per Rule 2-5, any affirmative defense MUST be properly asserted and supported, i.e. dec page or something. Additionally, there is no post-hearing relief for policy limits. Rule 3-9 applies only to cases where the Respondent did not originally answer and they are denying coverage (See Denial of Coverage definition). The coverage defense of policy limits must be properly asserted prior to hearing. Last, if the Rules are not followed and an award in excess of the policy limits is given, the award is binding and, most likely would be enforceable by a Court.
Related Questions
- If a company has policy limits can an arbitrator disregard the policy limit and award compensation over the limits? And, if so, is the award binding?
- Why does an association need a Workers Compensation policy, since their management company obtains proof of workers comp for all vendors?
- Are a company’s directors or executive officers covered under California workers’ compensation policy?
