A mediation program launched by the Alabama Department of Insurance following Hurricane Katrina is bearing fruit, says Commissioner Walter A. Bell, pointing to a 90 percent success rate.
“Once the mediation conference is set up, 90 percent of the cases have been settled. That is a strong indication of success,” Bell said.
The mediation program was recommended by the Hurricane Insurance Issues Task Force just prior to Hurricane Katrina.
Under the program, consumers meet with representatives of their insurance company along with a department attorney who serves as mediator. The insurance company is required to pay for the cost of the mediation.
If a consumer has filed legal action, then the claim is not eligible for mediation. The mediation is only binding if both parties agree to a settlement.
“We’ve had an attorney spend most of her time in Mobile this summer and fall hearing mediation conferences,” Bell said. “And we will continue to do so until every consumer that wants mediation gets that opportunity.”
Currently, the program is limited to storm-related claims, according to Bell.
Topics Alabama
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