First Paragraph
In Radil v. National Union Fire Insurance Co., the Supreme Court of Colorado held that an excess insurer was bound by the arbitration clause in the primary insurer's uninsured/underinsured motorist coverage when the excess insurer endorsed the primary insurer's coverage by follow-form. The court reasoned that since the excess insurer did not provide any limiting language concerning the scope of the coverage, the follow-form endorsement applied to the entire scope of the primary insurer's coverage, including the arbitral clause. Further, the court rejected the excess insurer's argument that a boilerplate statement found at the end of the policy agreement constituted an express disclaimer of the arbitration clause. The court cited Colorado's strong public policy in favor of arbitration as a mechanism of alternate dispute resolution to support its holding.
Recommended Citation
Jamie L. Augustinsky, Supreme Court of Colorado Holds that an Excess Insurer Who Endorses a Primary Insurer's Coverage Agreement by Follow-Form is Subject to the Arbitral Clause within that Agreement, 3 Arb. L. Rev. 293 (2011).