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The Limited Scope of Arbitration: A Basis for Removing Claims Subject to Rescission Actions

By Anthony J. Golowski II
October 30, 2007

Automobile insurance carriers in New Jersey and New York are routinely faced with the issue of whether a fraudulent insurance claim for personal injury protection ('PIP') benefits must be adjudicated in statutorily mandated PIP arbitration or whether those claims may be adjudicated in a court of law. In New Jersey, PIP claims are arbitrated before the National Arbitration Forum, Inc. In New York, PIP claims are arbitrated before the American Arbitration Association.

In cases involving fraudulently procured insurance policies, this issue was squarely decided on July 27, 2007 by the Appellate Division of the New Jersey Superior Court in Nationwide Mutual Fire Insurance Company v. Fiouris, Docket No. A-5458-05T2, an opinion that has been approved for publication.

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