ADR uses doubles in CGL disputes, survey finds.(alternative dispute resolution, commercial general liability insurance policies)

National Underwriter Property & Casualty-Risk & Benefits Management, June, 1996 by Esters, Stephanie

The use of alternative dispute resolution in settling commercial general liability claims more than doubled from 1991 to 1994, according to a survey by the New York-based ISO Data Inc., a subsidiary of the Insurance Services Office. ADR use increased from 6.8 percent in 1991 to 14.4 percent in 1994, based on analysis of 1,778 claims, according to ISO Data.

(These large claims closed between July 1, 1994, and Oct. 31, 1994, with settlements of $75,000 and higher.) Thirty-five insurers--representing 66 percent of the commercial general liability market--participated in the survey, conducted under the auspices of the National Association of Insurance Commissioners. ADR methods include mediation, arbitration and other approaches to solving impasses that are outside...

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