RMA published Final Agency Determination FAD-126, which contains an important reminder about how to start the arbitration process if you have a dispute under your crop insurance policy (you can read that FAD in its entirety by clicking here).
The policy says a couple things. First, it says that you have to initiate arbitration within one year of the insurance company's determination (see Basic Provisions, Section 20(b)(1)). However, the policy also says that all arbitrations will use the rules of the American Arbitration Association (AAA), even if the parties use some other arbitration service (see Basic Provisions, Section 20(a)).
What these two policy provisions mean (and what FAD-126 reminds us) is that you must start the arbitration process using AAA's rules for doing so. AAA's rules say that in order to start an arbitration, the Claimant (the policyholder) must file an Arbitration Demand with AAA or whichever arbitration service the parties use.
Reading between the lines of FAD-126, it appears that a policyholder sent the insurance company a letter saying, "I want to arbitrate my dispute," but the policyholder then left it at that, perhaps thinking that was all he needed to do. Remember, reading the policy provisions alone will not alert you to the fact that you have to file an Arbitration Demand - you have to read AAA's rules to know that.
FAD-126, which is binding on all crop insurance participants, reminds us that just sending the company a letter is not enough. If you do not file an Arbitration Demand by the one-year deadline, you could lose your right to dispute the insurance company's determination.
The crop insurance dispute resolution rules can be complicated. Don't risk losing your rights - call The O'Connor Law Firm with any questions.
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