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Arbitration

co, ins, app, supp and loss

ARBITRATION. A common provision in poli cies for all kinds of insurance is one for compulsory arbitration in case of differei,_.! between the parties as to the amount of loss. Such a provision has been held void as oust ing the court of its jurisdiction; Baldwin v. Accident Ass'n, 21 Misc. 124, 46 N. Y. Supp. 1016 ; contra, Western Assur. Co. v. Hall, 112 Ala. 318, 20 South. 447; Wolff v. Ins. Co., 50 N. J. L. 453, 14 Atl. 561. An award is not required as a condition precedent to a right of action, but a refusal for• a demand of appraisal may be set up as a bar ; Davis v. Assur. Co., 16 Wash. 232, 47 Pac. 436, in which rehearing was denied ; 47 Pac. 885; but it has been held a condition precedent; McNees v. Ins. Co., 69 Mo. App. 232; Scot tish Union & National Ins. Co. v. Clancy, 71 Tex. 5, 8 S. W. 630 ; but not unless request ed in writing; Davis v. Ins. Co., 96 Ia. 70, 64 N. W. 687; and it is inoperative where no arbitrators are agreed upon; 2Etna Co. v. McLead, 57 Kan. 95, 45 Pac. 73, 57 Am. St. Rep. 320; and is not applicable to a case of total loss ;, Rosenwald v. Ins. Co., 50 Hun 172, 3 N. Y. Supp. 215; or to the portion of the insured property totally de stroyed ; Lang v. Fire Co., 12 App. Div. 39, 42 N. Y. Supp. 539 ; or where the insurer de nies liability ; Nelson v. Ins. Co., 120 N. C. 302, 27 S. E. 38 ; or in case of total loss under valued policy acts; Seyk v. Ins. Co., 74 Wis. 67, 41 N. W. 443, 3 L. R. A. 523; German Ins. Co. of Freeport v. Eddy, 36 Neb. 461, 54 N. W. 856, 19 L. R. A. 707 ; Jacobs v. Ins. Co., 61 Mo. App. 572. Formal notice of the

proceedings of appraisers is not necessary to a party who has knowledge of them; Remington Paper Co. v. Assur. Corp., 12 App. Div. 218, 43 N. Y. Supp. 431. A valua tion by the company's adjuster and builders selected by the insured is an appraisal with in the policy, without previous effort to agree upon the loss ; London & Lancashire Fire Ins. Co. v. Storrs, 71 Fed. 120, 17 C. C. A. 645. • Appraisers cannot determine the construc tion of the policy ; Michel v. Ins. Co., 17 APP. Div. 87, 44 N. Y. Supp. 832; and the award may be set aside where it is grossly below the actual loss ; Royal Ins. Co. v. Parlin & Orendorff Co., 12 Tex. Civ. App. 572, 34 S. W. 401 ; but not for a mere mistake, not ap pearing on its face; Remington Paper Co. V Assur. Corp. of England, 12 App. Div. 218, 43 N. Y. Supp. 431; and it need not state the manner of arriving at the result ; id.

Loss of a member (in accident insurance) has taken place, according to the weight of authority, if the use of the member has been permanently lost, as by paralysis ; 3 Willh. & Beck, Med. Jurispr. 140, citing Sheanon v. Ins. Co., 77 Wis. 618, 46 N. W. 799, 9 L. R. A. 685, 20 Am. St. Rep. 151; Sueck v. Ins. Co„ 88 Hun 94, 34 N. Y. Supp. 545 ; Sis son v. Supreme Court of Honor, 104 Mo. App. 54, 78 S. W. 297; contra, Stevers v. Ins. Ass'n, 150 Pa. 132, 24 Atl. 662, 16 L. R. A. 446, if the member can be used by means of an appliance, though not without.

See TOTAL Loss.