Intrust Claim Servicing

The typical appraisal clause, found in most insurance policies today, is similar to the following: "If you and we fail to agree on the amount of loss, either may demand an appraisal of the loss. In this event, each party will choose a competent appraiser within 20 days after receiving a written request from the other. The two appraisers will choose... an umpire. If they cannot agree upon an umpire within 15 days, you or we may request that the choice be made by a judge of a court of record in the state in which the loss is located. The appraisers will separately set the amount of loss. If the appraisers submit an agreement to us, the amount agreed upon will be the amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will set the amount of loss. Once Appraisal has been invoked by either party, we establish contact with the other partys appraiser. Then, pursuant to the policy, we attempt to agree upon an umpire. The process of selecting an umpire may be lengthy as it requires careful selection of a competent and disinterested individual. It must be a person qualified to discern and correctly interpret what is being presented without bias or partiality. Occasionally, a letter of disclosure from an umpire candidate is demanded by either appraiser to determine or confirm the umpire candidates impartiality. In fact, such a letter is required by law in some states. For example, in California, to comply with California Code of Civil Procedure 1281.9, both the appraisers and umpire must provide both parties (insurer and insured) with a full disclosure letter. This Declaration of Disclosure letter from the appraisers and umpire individually, must contain all information necessary to disclose any relationship he/she has with either party. If the two (2) appraisers cannot agree upon an umpire within the stated time (typically 15 days) either party may petition a judge in a court of record in the state of the loss to choose from their candidate(s). Our legal ...Read More