Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-135 - MEDIATION ALTERNATIVE PROCEDURES FOR RESOLUTION OF DISPUTED PERSONAL LINES INSURANCE CLAIMS ARISING FROM HURRICANE, TROPICAL STORM, TORNADOS AND OTHER DISASTERS DAMAGE › Section 482-1-135-.07 - Mediation Conference

Current through Register Vol. 42, No. 9, June 28, 2024
(1) The
			 insurer will produce at the conference a copy of the policy and will bring the
			 entire claims file. The insurer is not required to allow the insured to review
			 or copy the claims file. The representative of the insurer attending the
			 conference must be familiar with and know the facts and circumstances of the
			 claim and have authority to settle the claim on behalf of the insured. The
			 insurer will be deemed to have failed to appear if the insurer's representative
			 lacks authority to settle the claim and the ability to disburse the settlement
			 amount at the conclusion of the conference. Insurer's representative satisfies
			 the requirements of this Paragraph if he or she has immediate access to a
			 person who has authority to settle the claim.
(2) A party may move to disqualify a mediator
			 for good cause at any time. The request shall be directed to the Department if
			 the grounds are known prior to the mediation conference. Good cause consists of
			 conflict of interest between a party and the mediator, that the mediator is
			 unable to handle the conference competently, or other reasons that would
			 reasonably be expected to impair the conference. Upon a showing of good cause,
			 the Department will appoint a new mediator pursuant to the procedure set out in
			 Chapter 482-1-135-.06.
(3) On or before the date set for the
			 conference, the insurer shall pay $350 to the Alabama Department of Insurance
			 to defer the Department's costs which includes the mediator's fee. If the
			 mediation is cancelled for any reason within 48 hours of the scheduled
			 mediation time and date, the party canceling the mediation will pay the
			 mediator $175 and the other party will not owe the mediator's fee. If either
			 party fails to appear at the conference, without good cause as determined by
			 the Department, that party shall pay the other party's actual expenses incurred
			 in attending the conference, shall pay the mediator's $350 fee, and the
			 conference shall be rescheduled at a mutually convenient time upon the
			 non-showing party's payment of an additional mediator's fee of $350. If the
			 insurer fails to appear at the conference, without good cause as determined by
			 the Department, the insurer shall pay the insured's actual expenses incurred in
			 attending the conference and in any event shall pay the mediator's fee. Failure
			 of a party to arrive at the mediation conference within 30 minutes of the
			 conference's starting time shall be considered a failure to appear. Good cause
			 shall consist of severe illness, injury, or other emergency which could not be
			 controlled by the insured or the insurer and, with respect to an insurer, may
			 include the inability to attend due to handling other hurricane-related or
			 tropical storm-related claims and whose non-attendance could not reasonably be
			 remedied prior to the conference by providing a replacement representative or
			 otherwise.
(4) Upon request of the
			 insured or the mediator, a representative or attorney of the Department will be
			 available to help insureds prepare for the mediation conferences. A
			 representative or attorney of the Department will be present at the conference
			 if requested by a party or the mediator to offer guidance and assistance to the
			 parties. Representatives attending the conference shall not assume an advocacy
			 role but shall be available to provide legal and technical insurance
			 information. Any request for assistance shall be submitted in writing to the
			 Department at least 14 days prior to the scheduled mediation
			 conference.
(5) The mediator will
			 be in charge of the conference and will establish and describe the procedures
			 to be followed. Mediators shall conduct the conference in accordance with the
			 standards of professional conduct for mediation. Each will be given an
			 opportunity to present their side of the controversy. In so doing, parties may
			 utilize any relevant documents and may bring any individuals with knowledge of
			 the issues, such as adjustors, appraisers or contractors, to address the
			 mediator, with each party bearing their own expenses in providing said
			 documents and individuals. Attorneys are not permitted to attend or participate
			 in a mediation conference held pursuant to this chapter, except for the
			 attorney or representative of the Department. The mediator may meet with the
			 parties separately, encourage meaningful communications and negotiations and
			 otherwise assist the parties to arrive at a settlement. Both parties must
			 negotiate in good faith. A party will be determined to have not negotiated in
			 good faith if they, or a person participating on their behalf, continuously
			 disrupts or otherwise inhibits the negotiations as determined by the mediator.
			 For purposes of this claims settlement process, mediators shall be deemed
			 agents of the Department and shall have immunity from suit. All statements made
			 and documents produced at a settlement conference shall be deemed settlement
			 negotiations in anticipation of litigation, shall not be public records, and
			 shall not be subject to discovery or admissible in a civil action.
Author:
Commissioner of Insurance
Statutory Authority:
Code of Ala.
				  1975
, §
										27-2-17.