An insured's bad faith claim with respect to UM coverage is subject to compulsory arbitration as required in the insurance contract.

Question

Quizplus · Accepted Answer

Bad faith claims against an insurer, including those related to underinsured motorist (UM) coverage, generally involve legal issues that are not subject to compulsory arbitration clauses in insurance contracts. These are typically resolved through litigation in court, as they often involve allegations of wrongful denial of benefits or failure to handle a claim properly, which are legal issues beyond the scope of most arbitration agreements.

An Insured's Bad Faith Claim with Respect to UM Coverage