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- Title
UM -- DEBT NOT DISCHARGED IN BANKRUPTCY -- WAIVER OF INSURER'S RIGHT TO ARBITRATE BARS EXCLUSIONARY CLAUSE DEFENSE.
- Abstract
This article presents a review of the court's decision on the waiver of insurer's right to arbitrate bars exclusionary clause defense. An insurance company may not invoke the exclusionary clause, under its uninsured motorist policy, as a defense if it has breached the policy by such acts as refusing to arbitrate the claim after demand. The court held that this was so even where the insured had failed to obtain written consent to sue the tort-feasor as required under the policy and even where the judgment thus obtained against the tort-feasor was not discharged in bankruptcy because the injury was judicially determined to have been wilfully and maliciously caused. The exclusion lends greater force to the arbitration requirement. If by its conduct here the insurer waived the arbitration requirement by failing to act on it, the purpose of the exclusion disappears as it no longer stands as a bar to the insured's instant action against the insurer.
- Subjects
INSURANCE companies; LABOR arbitration; UNINSURED motorist insurance; INSURANCE; ACTIONS &; defenses (Law); LEGAL judgments
- Publication
Arbitration Journal, 1975, Vol 30, Issue 3, p234
- ISSN
0003-7893
- Publication type
Article