Insurers Lose More Ground In Arbitration Clause Debate

Law360, New York (January 22, 2013, 8:37 PM EST) -- The Washington Supreme Court ruled Thursday that a state law forbids insurers from requiring arbitration of coverage disputes, adding to a growing consensus that the McCarran-Ferguson Act lets states sidestep a federal law favoring arbitration when it comes to domestic insurance contracts, experts say.

Handing a win to the Washington State Department of Transportation, the state high court struck down arbitration clauses in two policies issued by James River Insurance Co., a carrier that was licensed outside of Washington state. The decision allows the WSDOT to argue...
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